i · pdf file(hereinafter "mdoc") and paid for by the state. (see exhibit...
TRANSCRIPT
IN THE CIRCUIT COURT FOR THE FIRST JUDICIAL DIST OF HINDS COUNTY, MISSISSIPPI
JIM HOOD, ATTORNEY GENERAL OF THE STATE OF MISSISSIPPI, ex rei. THE STATE OF MISSISSIPPI,
Plaintiff,
v.
BRANAN MEDICAL CORPORATION; DRUG TESTING CORPORATION; CHRISTOPHER B. EPPS; CECIL MCCRORY; MARK LONGORIA and DEFENDANT DOES 1 through 5,
Defendants.
CIVIL ACTION NO.: I ( - <? l
COMPLAINT
COMES NOW, the Plaintiff, Jim Hood, Attorney General of the State of Mississ ppi, ex rei. the
State of Mississippi (hereinafter the "State" or "Plaintiff') and brings this cause o action against
Branan Medical Corporation (hereinafter "Branan"); Drug Testing Corporati n (hereinafter
"DTC"); Christopher B. Epps; Cecil McCrory; Mark Longoria and Defendant D es 1 through 5
(collectively "Defendants"), and alleges as follows:
INTRODUCTION
1. This action arises from one of the largest and longest-running cri inal and civil
conspiracies in Mississippi government history. For approximately seven ears, multiple
individuals and business entities, including one high-ranking government official were involved
in a conspiracy, scheme and/or enterprise (hereinafter "conspiracy") that in luded bribery,
kickbacks, misrepresentations, fraud, concealment, money laundering and ther wrongful
conduct-all with the intent to defraud and deprive the State of hundreds of milli ns of dollars in
proceeds from public contracts awarded by the Mississippi Department f Corrections
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(hereinafter "MDOC") and paid for by the State. (See Exhibit "A" - indictment fo United States
vs. Christopher B. Epps and Cecil McCrory; Exhibit "B" - indictment for United fates vs. Carl
Reddix; Exhibit "C" - information for United States vs. Sam Waggoner; Exhibit " " - indictment
for United States vs. Irb Benjamin; Exhibit "E" - information for United S tes vs. Mark
Longoria; Exhibit "F" - indictment for United States vs. Teresa Malone; xhibit "G" -
indictment for United States vs. Guy E. "Butch" Evans; Exhibit "H" - informa ion for United
States vs. Robert Simmons; and Exhibit I - indictment for United States vs. Willia
2. During this time, several corporate entities, including Defend s Branan and
DTC, sellers of "drugs-of-abuse" testing products, paid millions of dollar in so-called
"consulting fees" to Defendant Cecil McCrory, and through McCrory these fee were used to
pay bribes and kickbacks to then-MDOC Commissioner Christopher B. Epps. B cause of these
bribes and kickbacks, Commissioner Epps awarded, directed and/or extended p blic contracts,
paid for by the State, to Defendants Branan and DTC.
3. Mark Longoria, who pleaded guilty to participating in the consp racy described
herein, testified that "every company out there that did business with the state of Mississippi]
hired Cecil McCrory as a consultant." He added: "I knew they had to hav some type of
connections to be able to get all this done. [N]o other states that I work in con ucted business
that way." (See Exhibit "J" at pp. 52- 53). In fact, these connections were so sp cial that "Epps
told McCrory that McCrory could get anything he wanted in the future from DOC through
Epps." (See Exhibit "A" at~ 24).
4. This action seeks compensatory damages, punitive damages, civil penalties,
disgorgement of all ill-gotten funds, gains and profits, restitution, and all other a propriate relief
on behalf of the State, which bore the cost and suffered significant losses as a result of
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Defendants' conspiratorial scheme. Defendants' actions restrained or restricted tr de; artificially
fixed, raised and stabilized prices and denied free and open competition. Ac ordingly, this
action seeks all forms of relief available for each violation under applicable law.
5. Attorney General Jim Hood brings this action on behalf of t e State in its
proprietary capacity, and on behalf of local governmental entities within the St te, pursuant to
the Attorney General's authority under Miss. Code§§ 7-5-1, 75-21-1 et seq., 97- 3-1 et seq. and
25-4-105. The State brings this action exclusively under the laws of Mississi pi, and to the
extent any claim or factual assertion herein may be construed as stating a federal
disavows that claim. The claims asserted are brought solely by the State and are ndependent of
any claims that individual citizens may have against Defendants. Accordingly, y attempt by
Defendants to remove this case to federal court would be without a basis in fact or law.
PARTIES
6. The foregoing paragraphs are incorporated here by reference, as if et forth in full.
7. Plaintiff, the State of Mississippi, is a body politic created by the onstitution and
laws of the State; as such, it is not a citizen of any state. Jim Hood is the Stat 's duly-elected
Attorney General. The Attorney General brings this action on the State's behalf, ursuant to the
authority granted to his office by Miss. Const. art. 6, § 173 (1890) and by Miss. C de § 7-5-1.
8. Defendant Christopher B. Epps was the Commissioner of
relevant times in this action and is a resident citizen of Rankin County, MS.
federal custody and awaits sentencing in 2017.
9. Defendant Cecil McCrory is a former state representative and res dent citizen of
Rankin County, MS, whose physical address is 1350 Star Road, Brandon, S 39043. He
currently remains free on a federal bond and awaits sentencing in 2017.
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10. Defendant Mark Longoria is a businessman and resident citizen o Houston, TX,
whose physical address is 11519 Ocotillo Drive, Houston, TX 77095. He current y remains free
on a federal bond and awaits sentencing in 2017.
11. Defendant Branan is a Nevada corporation, with its principal pl ce of business
located at 140 Technology Drive, Suite # 400, Irvine, CA 92618. Branan is a wholly owned
subsidiary of Alere, Inc. Service can be made to C.T. Corporation System at 645 Lakeland East
Drive, Suite 101, Flowood, MS 39232
12. Defendant DTC is a Texas corporation, with its principal pla e of business
located at 10528 Tanner Road, Houston, TX 77041. Service can be made to L. . Clinton, III at
Post Office Box 841396, Houston, TX 77284.
13. Defendant Does 1 through 5 are individuals, corporations, 1 mited liability
companies, partnerships or other entities that participated in the conspiracy. T e identities of
these Defendants are unknown to the State until adequate discovery is allowed.
JURISDICTION AND VENUE
14. The foregoing paragraphs are incorporated here by reference, as if et forth in full.
15. This Court has jurisdiction over the subject matter of this action p suant to Miss.
Const. art. 6, § 156 (1890) and Miss. Code§ 9-7-81, because the amount in cont oversy exceeds
$200 and the subject matter is not exclusively cognizable in some other court.
16. This Court has personal jurisdiction over those Defendants w o are resident
citizens of Mississippi and over Branan, DTC and Longoria because they h ve engaged in
systematic and continuous business activity in Mississippi, and because a subs tial amount of
their conspiratorial and unlawful acts occurred in Mississippi and were intended to-and in fact
did--cause substantial harm to the State.
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17. This Court is the proper venue under Miss. Code § 11-11-3(1) a)(i), because
substantial acts and omissions complained of herein occurred in Hinds Count , Mississippi,
where MDOC's headquarters is located.
FACTS
18. The foregoing paragraphs are incorporated here by reference, as if et forth in full.
19. From approximately 2006 through 2014-Defendants Christopher B. Epps, Cecil
McCrory, Mark Longoria, Branan and DTC knowingly and intentionally cons ired to devise
schemes using overt acts such as bribery, kickbacks, unfair and deceptive ade practices,
misrepresentations, fraud, concealment, money laundering and other wrongful c nduct, all with
the intended purpose, and effect, of defrauding the State of approximately $3,500, 00.
20. In essence, the scheme worked like this: then-Commissioner Epp , McCrory and
Longoria had a "backroom" relationship or agreement with Branan and DTC. B anan and DTC
paid Defendant McCrory so-called "consulting fees." McCrory then paid a porti n of those fees
as bribes and kickbacks to Epps, in exchange for MDOC awarding approximate! $3,500,000 in
public contracts to Branan and DTC. Defendants Branan and DTC were willfu participants in
the scheme insofar as they knew-had every reason to know or should have own-that the
money they were paying McCrory was being used to pay bribes and kickbacks o Epps for the
purpose of obtaining and retaining public contracts.
Branan's Scheme to Defraud the State
21. Defendant Christopher B. Epps worked for MDOC for 32 ears and was
appointed Commissioner of MDOC in 2002. As Commissioner, Epps was "res onsible for the
management of affairs of the correctional system and for the proper care, tre ment, feeding,
clothing and management of the offenders confined therein." Miss. Code§ 47-5- 3.
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22. From 2001 until 2013, Defendant Mark Longoria was the Direc r of National
Accounts for Branan, with supervisory responsibility for sales and marketing.
23. In or around 2006, Defendant Branan sought and obtained busines
as it related to public contracts supplying "drugs-of-abuse" testing products for M
24. Then-Commissioner Epps and Defendant McCrory entered into a "backroom"
relationship or agreement with Defendants Branan and Longoria, pursuant to which Branan
would pay so-called "consulting fees" to McCrory, from which McCrory would u e these fees to
pay Commissioner Epps bribes and kickbacks. (See Exhibit "A" at~~ 3 - 9).
25. During this time, then-Commissioner Epps awarded, directed
public contracts, paid for by the State, to Defendant Branan totaling approximate!
26. At all relevant times, Defendants Mark Longoria and Cecil McCr ry were acting
in the course and scope of their employment and/or in furtherance of the inter sts of Branan.
Defendants Longoria and McCrory were actual or apparent agents, acting with ac al or apparent
authority, on behalf of Branan. Therefore, Defendant Branan is liable for the acti ns of Longoria
and McCrory as an employee, statutory employee or agent. Moreover, Defe dants Branan,
Longoria and McCrory pursued a common plan and course of conduct, acted i concert with,
aided and abetted and otherwise conspired with one another, in furtherance o their common
scheme to defraud the State.
27. Defendant Branan knew, or should have known, that the "consulfng fees" it was
paying Defendant McCrory were being used to pay bribes and kickbacks to assure that
Defendant Epps would award public contracts, paid for by the State, to Branan.
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DTC's Scheme to Defraud the State
28. In are around 2013, Defendant Mark Longoria resigned from Br and formed
DTC, where he was the Chief Executive Officer. Like Branan, Defendant D C sought and
obtained business from the State as it related to public contracts supplying "
testing products for MDOC inmates. (See Exhibit "E" at~~ 3- 4).
29. In August of 2013, in order to facilitate the procurement of 1 crative public
contracts with MDOC, Defendant Longoria entered into a "commission ag eement" with
Investigative Research, Inc., a company owned by Defendant Cecil McCro . Defendants
Longoria, McCrory and Epps understood, and agreed, that a portion of these 'commissions"
would be used to pay bribes and kickbacks to Epps for awarding these publ c contracts to
Defendant DTC. (See Exhibit "E" at ~~ 5 & 11 - 15).
30. On or about August 20, 2013, MDOC awarded DTC a contract o sell MDOC
drug testing cups for which the State paid $632,336.25. After receiving payment om the State,
DTC remitted a check to Investigative Research, Inc., for $194,837.50. (See Exh bit "E" at~~ 6
- 7).
31. On or about May 20,2014, DTC invoiced MDOC for a second set of drug testing
cups for which the State paid $149,940.00. After receiving payment from t e State, DTC
remitted a check to Investigative Research, Inc., for $34,997.64. (See Exhibit "E" at~~ 8 - 9).
32. Based on the "backroom" agreement entered into by then-Co issioner Epps
and McCrory with Defendants DTC and Longoria, once these so-called "co issions" were
paid to McCrory, Defendant McCrory used these "commissions" to pay Defend Epps $60,000
in bribes and kickbacks. (See Exhibit "E" at ~~ 11 - 12).
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33. During this time, then-Commissioner Epps awarded, directed
public contracts, paid for by the State, to Defendant DTC totaling approximately$ 82,276.25.
34. At all relevant times, Defendants. Mark Longoria and Cecil McCr ry were acting
in the course and scope of their employment and/or in furtherance of the int rests of DTC.
Defendants Longoria and McCrory were actual or apparent agents, acting with ac al or apparent
authority, on behalf ofDTC. Therefore, Defendant DTC is liable for the actions o Longoria and
McCrory as an employee, statutory employee or agent. Moreover, Defendants TC, Longoria
and McCrory pursued a common plan and course of conduct, acted in concert ith, aided and
abetted and otherwise conspired with one another, in furtherance of their co on scheme to
defraud the State.
35. Defendant DTC knew, or should have known, that the "comm ssions" it was
paying Defendant McCrory were being used to pay bribes and kickbacks o assure that
Defendant Epps would award public contracts, paid for by the State, to DTC.
Criminal Charges and Guilty Pleas
36. Epps resigned as Commissioner of MDOC on November 5, 201 , and the next
day he was indicted on federal charges for participating in the conspiracy descri ed herein. He
pleaded guilty on February 4, 2015. (See Exhibit "K" - Plea Agreement for U ited States vs.
Christopher B. Epps).
37. Like Defendant Epps, Defendant McCrory was indicted Novem er 6, 2014, on
federal charges for participating in the conspiracy described herein. He, too, pl aded guilty on
February 4, 2015. (See Exhibit "L"- Plea Agreement for United States vs. Cecil cCrory).
38. Defendant Longoria was charged by information on July 25, 2 16, on federal
charges for participating in the conspiracy described herein. He, too, pleaded guil on August 3,
2016. (See Exhibit "M"- Plea Agreement for United States vs. Mark Longoria).
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Mississippi's Competitive Bidding Requirements
3 9. Miss. Code § 31-7-13 sets forth the mandatory bidding require
purchases of $50,000 or more. It sets out broadly what purchases require comp titive bidding
and narrowly what purchases are exceptions to that requirement. oses of the
Mississippi system of "competitive bidding" are to obtain the lowest price, to create a level
playing field for suppliers, and above all, to frustrate corrupt conspiracies.
40. Contrary to Miss. Code § 31-7-13, Defendant Epps, as
Defendants Branan and DTC, made findings that exceptions to the "comp titive bidding
requirement" were applicable to some or all of the contracts described herein, wh n in fact, there
were no circumstances justifying the award of "no-bid" contracts. In fact, m tiple qualified
contractors would have been available to perform all of the services for whic the "no-bid"
contracts were awarded.
41. The market for "drugs-of-abuse" testing products is competitive and there are
many participants. In truly competitive markets, Branan and DTC would have ad to compete
with many potential rivals for the Mississippi contracts.
42. As bribes to facilitate the award of the "drugs-of-abuse" te contracts,
Defendants Branan and DTC agreed to pay bribes and kickbacks to McCrory and
Proceeds Derived from Defendants' Conduct
43. Defendants' conspiratorial scheme was successful. Between 2
Defendants Branan and DTC received approximately $3,500,000 in procee s from public
contracts paid for by the State.
44. Defendants knew, or should have known, that they were p in a
conspiracy to defraud the State, through the payment of "consulting fees" or "co issions" that
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were being used to pay bribes and kickbacks to a State official in exchange for p blic contracts,
awarded by MDOC, and paid for by the State.
45. Moreover, by retaining Cecil McCrory as an agent to obtain t ese contracts,
Defendants Branan and DTC are liable not only for their own wrongful actions, ut also for the
wrongful actions of their agent, McCrory.
CLAIMS FOR RELIEF
COUNT I VIOLATIONS OF MISS. CODE§ 25-4-105
46. The foregoing paragraphs are incorporated here by reference, as if t forth in full.
4 7. At all relevant times, Defendant Epps was a "public servant" with n the meaning
ofMiss. Code§ 25-4-103(p)(i).
48. Defendant Epps, while a public servant, "use[ d] his official positi n to obtain, or
attempt to obtain, pecuniary benefit for himself other than that compensation p ovided for by
law," in violation of Miss. Code§ 25-4-105(1).
49. Defendant Epps, while a public servant, was "interested, directl or indirectly,
during the term for which he shall have been chosen ... in [several] contract[s] th the [S]tate,"
in violation of Miss. Code § 25-4-1 05(2).
50. Defendant Epps, while a public servant, performed services for 'compensation
during his term of office or employment by which he attempt[ ed] to influence de ision[ s] of the
authority of the governmental entity of which he [wa]s a member," in violation o Miss. Code§
25-4-105(3)(d).
51. Pursuant to Miss. Code § 25-4-113, the Attorney General is entitl d to bring this
action "against the public servant or other person or business violating the pr visions of this
article for recovery of damages suffered as a result of such violations."
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52. The Attorney General brings this action against Defendants E ps, McCrory,
Longoria, Branan and DTC pursuant to Miss. Code §§ 25-4-105 and 25-4-113 and demands
recovery of all money paid by the State as a result of the aforesaid misconduct.
53. Miss. Code § 25-4-113, provides that the State is entitled to a dec aration by this
Court that all pecuniary benefits "received by" Defendant Epps, or "given by" E ps to the other
Defendants, irrespective of actual damages, "shall be declared forfeited by a ircuit court of
competent jurisdiction for the benefit of the governmental entity injured." The State demands
under said law, the forfeiture to the State of all money paid to Epps as alleged erein, and the
forfeiture to the State of all money (approximately $3,500,000) paid by the Stat to Defendants
Branan and DTC.
54. Pursuant to Miss. Code § 25-4-113, the State, at the discretion of he Court, may
also be awarded costs of court and reasonable attorneys' fees, and the State dem ds such costs
and fees from Defendants.
COUNT II VIOLATIONS OF RACKETEER INFLUENCED
AND CORRUPT ORGANIZATION ACT
55. The foregoing paragraphs are incorporated here by reference, as if et forth in full.
56. At all relevant times, Defendants were or are an enterprise within the meaning of
Miss. Code§ 97-43-3(c).
57. Beginning in 2006 and continuing through 2014, the exact dat s being as yet
unknown, Defendants associated together to establish a criminal partnership wi h the common
goal of trading cash for State contracts. Defendants accomplished this goal thro gh a pattern of
racketeering activity, in violation ofMiss. Code§ 97-43-1 et seq.
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58. Defendants conspired to commit and then actually committed a pattern of
racketeering activity-a series of crimes including, but not necessarily limited , commercial
bribery in violation of Miss. Code § 97-9-1 0 and bribery to conceal offenses in vi lation of Miss.
Code § 97-9-9, with the intended purpose of compelling the State to pay approximately
$3,500,000 to Branan and DTC. Predicate offenses include, but are not necess 'ly limited to,
(1) each periodic payment made by Defendants Branan and/or DTC to Defe dant McCrory
and/or to persons or entities affiliated with McCrory, and (2) each transfer of nds made by
McCrory to or for the benefit of Defendant Epps. Through their pattern of racket ering activity,
Defendants directly and indirectly conducted and participated in the affairs f MDOC and
acquired and maintained an interest in, and control of, MDOC. Acting with crimi al intent, they
also used the proceeds derived from this pattern of racketeering activity in t operation of
MDOC.
59. As a direct and proximate result of Defendants' conduct, the tate has been
harmed and has suffered damages. Also pursuant to § 97-43-9(2), the Stat is entitled to
forfeiture by the Defendants of all property "derived from, or realized throu h, conduct in
violation" of Miss. Code § 97-43-1 et seq. The State demands judgment for all such damages
and demands the forfeiture of approximately $3,500,000 wrongly paid to Branan
State.
COUNT III VIOLATIONS OF THE MISSISSIPPI ANTITRUST ACT
60. The foregoing paragraphs are incorporated here by reference, as if et forth in full.
61. The Defendants' actions violated provisions of Mississippi law go erning "Trusts
and Combines in Restraint or Hindrance of Trade," or the Mississippi Antitrust ct (Miss. Code
§ 75-21-1 et seq.).
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62. As described herein, Defendants entered into a continui agreement,
understanding or conspiracy to restrain trade and to artificially fix, raise and stab lize prices for
various goods and services sold to the State.
63. The Defendants' anticompetitive conduct prevented competitiv bidding, and
thus, precluded competition on price and quality in the "drugs-of-abuse" testing
vendors would have been available to compete for the above-referenced contract . Branan and
DTC's payments of bribes and kickbacks to Epps and McCrory also caused Bran and DTC to
incur higher costs, which were passed on to the State. Branan and DTC's conduct hus prevented
the State from obtaining a competitive market price for the services it purchased raising prices
above competitive levels, as described herein.
64. But for the Defendants' anticompetitive acts, the State would ha e been able to
purchase these services at lower prices or at legal and competitive prices.
65. The State is entitled to damages pursuant to Miss. Code§ 75-21-9 d to penalties
pursuant to Miss. Code§§ 75-21-7, 75-21-9 and 75-21-15.
66. Defendants' unlawful and unfair business practices have therefl re caused the
State to pay supra-competitive and artificially-inflated prices for services, and each purchase
constitutes a violation of the Mississippi Antitrust Act, for which damages the State demands
payment from Defendants.
COUNT IV VIOLATIONS OF MISS. CODE§ 31-7-13- BIDDING REQUIRE NTS
67. The foregoing paragraphs are incorporated here by reference, as if
68. Defendants' "no-bid" contracts violated Mississippi's system of op n bidding.
69. Miss. Code § 31-7-13 sets forth the mandatory bidding require ents for State
purchases of $50,000 or more. It sets out broadly what purchases require com etitive bidding
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and narrowly what purchases are exceptions to that requirement. The p oses of the
Mississippi system of "competitive bidding" are to obtain the lowest price, to create a level
playing field for suppliers, and above all, to frustrate corrupt conspiracies.
70. As set forth herein, Defendants' conduct caused the State to enter into wrongful
"no-bid" and/or "sole source" contracts. Defendants used untrue and fabricated ci cumstances as
justification for using wrongful "no-bid" contracts.
71. Defendants succeeded in their wrongful "no-bid" contracting, co ting the State
large sums in overpayment. Defendants derived, directly or indirectly, the fruit of that effort.
Therefore, the State demands a return of all profits and reimbursement of all e cess costs, for
which the Defendants were responsible through their wrongful actions.
COUNTV BREACH OF FIDUCIARY DUTY AND AIDING
AND ABETTING BREACH OF FIDUCIARY DUTY
72. The foregoing paragraphs are incorporated here by reference, as if et forth in full.
73. Defendant Epps, at all times pertinent hereto, owed fiduciary dutie of, inter alia,
care and loyalty, to the State.
74. Defendant Epps breached those fiduciary duties by accepti g bribes and
kickbacks from persons and/or entities seeking public contracts or through t eir agents, by
causing public contracts to be awarded to such entities and by causing public ontracts to be
awarded without following procedures required by law.
75. The Defendants (other than Epps), at all pertinent times, had kno ledge ofEpps'
fiduciary duties to the State and provided substantial assistance to Epps that llowed him to
breach his fiduciary duties to the State.
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91. Defendants have enriched themselves unjustly at the State's expens , by engaging
in the acts and practices described herein. Therefore, the State demands disgorge ent of all ill
gotten funds, gains and profits received by Defendants as a result of their actions.
DAMAGES AND OTHER RELIEF SOUGHT
92. The foregoing paragraphs are incorporated here by reference, as if t forth in full.
93. As a result of Defendants' aforesaid misconduct, the State seeks ecovery of all
available damages, including-but not limited to-compensatory, punitive and ex mplary.
94. Because Defendants' conduct constitutes willful, egregious, reckl ss, fraudulent
and wrongful acts against the State, the State seeks punitive damages under Miss Code § 11-1-
65, in an amount that is appropriate and necessary.
95. The State seeks forfeiture of all money received by Defend ts, directly or
indirectly, through the conduct alleged herein.
96. The State seeks rescission of all illegally awarded contracts and/or orfeiture of all
pecuniary benefits received by Defendants, or otherwise realized by them, directl or indirectly,
through the conduct alleged herein, including but not limited to, all money paid b the State from
all public contracts.
97. The State seeks restitution of all illegally obtained or ill-gotten nds and gains
paid by the State to Defendants.
98. The State seeks pre-judgment interest, post-judgment interest,
court costs, investigative costs, expert-witness fees, deposition fees and any o er expenses or
damages which this Court deems proper.
99. The State reserves the right to amend this complaint to allege furth r damages.
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RIGHT TO AMEND PURSUANT TO MISS. R. CIV. P. 15
100. Under Rule 15 of the Mississippi Rules of Civil Procedure, the Sta e reserves the
right to name additional defendants should later facts establish that others are liabl .
JURY TRIAL DEMAND
101. The State demands a jury trial.
PRAYER
Given the above, the State requests that upon final trial hereof, the State be entitled to
recover from Defendants all the relief that is sought-including but not limited to, ompensatory,
punitive and exemplary damages, forfeiture, disgorgement of all ill-gotten funds, ivil penalties,
pre- and post-judgment interest, attorneys' fees, court costs, investigative costs, ex ert-witness
fees, deposition fees and any other expenses or damages which this Court deems p oper.
Respectfully submitted, thi~ the ~ day of \-~~'\Jttfl
JIM HOOD, ATTORNEY GENE L OF THE STATE OF MISSISSIPP rei. THE STATE OF MISSISSIPP
By:__L../..!...._~~~~~~~....:::!!:!4----George W. Neville, Esq. (MSB # 382 ) Geoffrey Morgan, Esq. (MSB # 3474 S. Martin Millette, III, Esq. (MSB # 102416) Jacqueline H. Ray, Esq. (MSB # 100 69) OFFICE OF THE ATTORNEY G NERAL Post Office Box 220 Jackson, Mississippi 39205-0220 Tel: (601) 359-3680 I Fax: (601) 359 2003 Email: [email protected] Email: [email protected] Email: [email protected] Email: [email protected]
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Case 3:14-cr-00111-HTW-FKB Document 3 Filed 08/05/14 Page of 21
IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPPI
NORTHERN DIVISION
UNITED STATES OF AMERICA
v.
The Grand Jury charges:
At all times relevant to this indictment:
CRIMINAL NOJ,f. (1/ I I I /lfltJ.rl{fj
18 U.S.C. § 1349 18 U.S.C. § 666(a)(l) 18 U.S.C. § 666(aX2) 18 u.s.c. § 1956(h) 18 U.S.C. § 1346 31 U.S.C. § 5324(a)(3 18 U.S.C. § 1956(a)(1 (B)(i) 26 u.s.c. § 7206(2)
1. The Mississippi Department of Corrections ("MDOC") was a state government
agency as that term is defined in Section 666(d), Title 18, United.States Code, an· which
received benefits in excess of $10,000 annually between 2007 and 2014 under F
providing Federal assistance to the MDOC.
2. Defendant CHRISTOPHER B. EPPS was the Commissioner of e Mississippi
Department of Corrections and as such was an agent of the MDOC, as that term i defined in
Section 666( d), Title 18, United States Code.
3.
Mississippi, who owned compani~s that contracted, signed leases or otherwise di
MDOC, including but not limited to Correctional Communications, Inc.; College treet Leasing,
LLC; American Transition Services, LLC; and G.T. Enterprises of Mississippi, In .
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EXHIBIT
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MCCRORY was also paid consulting fees by other companies seeking or recei · contracts
with MDOC or for work completed for MDOC, including but not limited to Com l Corrections,
Inc.; The GEO Group, Inc.; Management & Training Corporation; Centric Group,
Keefe Commissary Network, LLC; Aclminpros, LLC; Wexford Health Sources, In .; Bantry
Group; and Branan Medical.
COUNT1
4. The allegations contained in paragraphs 1 through 3 of this indictm nt are
realleged and incorporated by reference as though fully set forth herein.
5. From in or about 2007 through in or about March 12, 2014, in Hin and Rankin
County in the Northern Division of the Southern District of Mississippi, and else here, the
defendants, CHRISTOPHER B. EPPS and CECIL MCCRORY, did knowingl and
intentionally combine, conspire, confederate, and agree with each other, to co one or more
of the following offense: to devise and intend to devise a scheme and artifice to
Mississippi. Department of Corrections and the State of Mississippi and its ci ·
intangible right to CHRISTOPHER B. EPPS's honest services, through bribes d kickbacks,
by use of interstate wire transmissions, in violation of Sections 1343 and 1346, T e 18, United
States Code.
6. It was the object of the conspiracy that defendant, CECIL MCC ORY, would
bribe or provide kickbacks to CHRISTOPHER B. EPPS, Commissioner of the · ssissippi
Department of Corrections, in exchange for the awarding of MDOC contracts, 1 es, or work to
companies owned by MCCRORY or to companies seeking contracts or provi ·
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:MDOC who had agreed to pay, were paying or already had paid MCCRORY as a consultant.
7. It was part of the conspiracy that companies owned by defendant CRORY
would be awarded contracts, leases or other work from MDOC.
8. It was also part of the conspiracy that defendant EPPS, in his positi n as
Commissioner of the Mississippi Department of Corrections, would steer and dir t such
contracts to defendant MCCRORY's companies, sometimes recommending to th
State Personnel Board that companies owned by or associated with MCCRORY
contracts by MDOC on a no-bid or sole source procurement basis.
9. It was further part of the conspiracy that defendant MCCRORY s
defendant EPPS, either in cash, through checks made payable to financial instituti ns holding the
mortgage for EPPS's home, or through wire transfers to financial institutions hol · g loans for
EPPS or to investment accounts owned by EPPS, in return for EPPS's assistance in ensuring
MDOC awarded or renewed contracts and leases to companies owned by MCCR
companies which had hired MCCRORY as a consultant.
10. It was further part of the conspiracy that, in order to keep their rel
financial arrangement confidential, defendant EPPS would store cash bribe paym ts received
from defendant MCCRORY in EPPS's safe at home, wherein EPPS would later structure the
' deposits of such cash into EPPS's various bank accounts or purchase cashier's c
amounts not greater than $10,000.
In furtherance of the conspiracy and to carry out its· objectives, the folio
others, were committed:
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11. On or about November 2, 2007, defendant EPPS signed a no-bid
awarded to G.T. Enterprises~ a company owned by defendant MCCRORY, for co "ssary
services at state prisons and private facilities which housed state inmates ..
12. In or about 2007, defendant EPPS solicited money from defendant
exchange for the contract that defendant MCCRORY's company had with MDO
13. In or about 2007, defendant MCCRORY paid defendant EPPS m
payments in the arilount of$3,000 to $4,000 on approximately fifteen occasions fi r the MDOC
contract that had been awarded to defendant MCCRORY's company.
14. In or about March 2008, defendant EPPS approved the assignmen of the MDOC
contract held by defendant MCCRORY's company, G.T. Enterprises, to another mpany, the
Centric Group, doing business as Keefe Commissary, LLC, resulting iii a large pr fit for
MCCRORY.
15. Shortly thereafter, defendant EPPS solicited defendant MCCRO
EPPS's home mortgage.
16. On July 25, 2008, defendant MCCRORY purchased a cashier's c eck in the
amount of $100,000 from his persoDal bank account at Community Bank, and
made payable and sent to Countrywide Bank, which held the mortgage for defen
home, with such check being applied to the mortgage for defendant EPPS's hom
Mississippi.
17. On October 2, 2008, defendant MCCRORY purchased a second
in the amount of $100,000 from his personal bank account at Community Bank,
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check made payable and sent to Countrywide Bank, which held the mortgage for d fendant
EPPS's home, with such check being applied to the mortgage for defendant EPPS s home in
Flowood,. Mississippi.
18. On October 24,2008, defendant EPPS signed a contract awarded b
Adminpros, LLC, which was a company that later paid defendant MCCROY.
19. On or about December 9, 2008, defendant EPPS signed a lease be
and College Street Leasing, a company owned by defendant MCCRORY, for the of land and
facilities upon which to operate a new inmate transition facility for males in Waln t Grove,
Mississippi.
20. On January 5, 2009, defendant MCCRORY purchased a third cas "er's check
from his personal bank account at Community Bank in the amount of $50,000 an made payable
to Countlyw:ide Bank, which held the mortgage for defendant EPPS's home, with such check
being applied to the mortgage for defendant EPPS's home in Flowood, Mississip i.
21. On April2, 2009, defendants EPPS and MCCRORY signed a 1 e between
MDOC and College Street Leasing, a company owned by defendant MCCROR
land and facilities upon which to operate an inmate transition facility for females
Grove, Mississippi.
22. OnJuly16, 2009, defendants EPPS and MCCRORY signed a co tract awarded
by MDOC to American Transition Services, a company owned by defendant MC ORY, to
operate and manage the men's facility at the Walnut Grove Transition Center.
23. On July 28,2009, defendant MCCRORY purchased a fourth cas ·er's check at
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. Community Bank in the amount $101,309.81, made payable to "BAC [Bank of
Loan Servicing, LP", which had succeeded Countrywide Bank in servicing defen
home mortgage, with such check being applied to and finally paying off the mortg
defendant EPPS's home in Flowood, Mississippi.
.24. A short time later, after defendant EPPS's home had been compte
defendant MCCRORY, EPPS told MCCRORY that MCCRORY could get an . he
wanted in the future from MDOC through EPPS.
25. On July 30, 2009, Epps deposited (1) $9,000 cash at the Regions b
Flowood, Mississippi at 2:16p.m.; (2) $9,000 cash at the BankPlus in Flowood,
2:31 p.m.; (3) $9,000 cash at the Regions bank branch in Jackson, Mississippi at
(4) $9,000 cash at the Mississippi Public Employees Credit Union ("MSPECU'') ·
Mississippi, the latter of which was used to pmchase a $9,000 official check whic
payable to EPPS's Edward Jones investment account.
26. On August 15, 2009, defendants EPPS and MCCRORY signed a
a\Varded by MDOC to American Transition Services, a company owned by.defen
MCCRORY, to operate and manage the womep.'s facility at the Walnut Grove T
Center.
27. On July 29,2010, defendant EPPS signed a contract awarded by
Adminpros, LLC, which was a company that paid defendant MCCRORY.
28. On January 24,2011, defendant EPPS signed a contract awarded y MDOC to
Adminpros, LLC, which was a company that paid defendant MCCRORY.
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29. On July 29, 2011, defendant EPPS signed a contract awarded by OCto
Adminpros, LLC, which was a company that paid defendant MCCRORY.
30. In or about July 2012, defendant EPPS signed a contract awarded MDOC to
Adminpros, LLC, which was a company that paid defendant MCCRORY.
31. In August 2012, defendant EPPS signed a "contract awarded by
Management & Training Corporation, which was a company that paid defendant
32. On August 21,2012, defendant MCCRORY wired $34,000 from ·s business
account at Merchant & Farmers Bank directly to Wells Fargo Home Mortgage, w · ch held the
loan for defendant EPPS's condominium in Biloxi, Mississippi, with such money being used to
pay down EPPS's Biloxi condominium loan.
33. On September 14,2012, defendant EPPS signed a contract award by MDOC to
Management & Tra.min.g-Corporation, which was a company that EPPS had pe
defendant MCCRORY as a consultant and a company with whom EPPS had
negoti~ MCCRORY's consulting fee, telling MCCRORY later, "I got us $1
ed to hire
month," which they ultimately divided _evenly after calculating the taxes that MC ORY would
be responsible for as having received the income.
34. On September 25, 2012, defendant MCCRORY wired $14,000 fr m his business
account at Merchant & Farmers Bank directly to Wells Fargo Home Mortgage,
loan for defendant EPPS's condominium in Biloxi, Mississippi, with such mone
pay down EPPS '.s Biloxi condominium loan.
35. On or about October 18, 2012, defendant EPPS signed a no-bid ntract awarded
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by MDOC ~o Management & Training Corporation, which was a company that pai
.MCCRORY.
36. On February 14, 2013, defendant MCCRORY wired $40,000 fro
account at Merchant & Farmers Bank directly to defendant EPPS's. Edward Jones vestment
account ending in x~10, falsely labeling the wire transaction as a consignment e of farm
equipment to conceal and disguise the scheme.
37. On or about July 15, 2013, defendant EPPS signed a no-bid con
MDOC to Management & Training Corporation, which was a company .that paid
MCCRORY.
38. On or about July 17, 2013, defendant EPPS wrote a letter to the
Personnel Board requesting "sole source procurement" for Adminpros, LLC, res g in
Adminpros being awarded a no-bid contract by MDOC later that month.
39. On September 4, 2013, defendant MCCRORY wired $50,000 fro
account at Merchant & Farmers Bank directly to defendant EPPS's Edward Jone
account ending in x-6410.
40. On or about October 8, 2013, defendant EPPS wrote a letter to tb
State Personnel Board stating that Adminpros "is the only vendor that performs edicaid
eligibility services for inmates" and "is the only vendor that can provide the servi as outlined
in the attached contract[,]" resulting in Adminpros being awarded a no-bid con
later that month.
41. Beginning in or about 2010, defendant MCCRORY gave ciefen
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bribe payment of several thousand dollars each month emanating from the consul fees that
MCCRORY had earned from companies doing business with MDOC, including,
to, on or about the following dates:
A. November 18, 2013 $8,000 B. December 24, 2013 $8,000 c. Feb 7, 2014 $8000 D. March 6, 2014 $8,000
42. During the time period of the conspiracy, defendant MCCRORY
defendant EPPS or the Internal Revenue Service with a Form I 099 reporting the.· come
provided to EPPS by MCCRORY throughout the time period of the conspiracy.
43. From January 2008 through June 2014, defendant EPPS struc
$900,000.00 in cash either by depositing such cash into his checking accounts or y purchasing
cashier's checks with such cash, almost all such transactions in amounts not grea r than
$10,000.00, in order to avoid the reporting requirements of the financial institutio and to
further conceal the defendants' bribery and kickback scheme.
All in violation of Section 1349, Title 18, United States Code .
. COUNTS 2-13
44. The allegations contained in paragraphs 1 through 44 of this indic ent are
realleged and incorporated by reference as though fully set forth herein.
45. That beginning and continuing through in or about the dates listed below, in Hinds
and Rankin County in the Northern Division of the Southern District ofMississi i, the
defendant, CHRISTOPHER B. EPPS, did corruptly solicit and demand for the enefit of any
person, things of value from a person, that is from CECIL MCCRORY, inten · g to be
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influenced and rewarded in connection with a transaction and series of transaction of the
Mississippi De partment of Corrections involving $5,000 or more:
COUNT DATES BRIBE/KICKBACK AMOUNT
2 AllgUSt 21,2012 $34,000 3 September 25, 2012 $14,000 4 February 14,2013 $40,000· 5 September 4, 2013 $50,000 6 september 24, 2o13 $9,000 7 November 18, 2013 $8,000 8 December 24, 2013 $8,000 9 Feb!U3fY 7, 2014 $8,000 10 March 6, 2014 $8,000. 11 April 9, 2014 $8,000 12 May9, 2014 $8,000 13 June 19, 2014 $18,000
All in V1 ·olation of Section 666(aXl)(B), Title 18, United States Code.
COUNTS 14-22
46. The allegations contained in paragraphs 1 through 45 of this indict:J ent are ln4
realleged and in corporated by reference as though fully set forth herein.
47. That beginning and continuing through in or about the dates listed pe low, in Hinds
and Rankin Co unty in the Northern Division of the Southern District of Mississip )i, the
defendant, CE CIL MCCRORY, did corruptly give, offer, and agree to give a thiJ g of value to
ding to influence and reward CHRISTOPHER B. EPPS, Comm any person inten sioner of the isl
artment of Corrections, in connection with a transaction and serie ~ Mississippi Dep of
transactions of the Mississippi Department of Corrections involving $5,000 or mCJ re
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COUNT DATES
19 November 18,2013 20 December 24, 2013
22 Much 6, 2014
BRIBE/KICKBACK AMOUNT
$34,000 $14 000 $40,000 $50 000 $9,000 $8,000 $8,000 $8,000 $8,000
All in violation of Section 666(a)(2), Title 18, United States Code.
COUNT23
48. The allegations contained in paragraphs 1 through 47 of this indic
realleged and incorporated by reference as though fully set forth hereia
49. . From in or about 2007 through in or about March 12, 2014, in Hin
County in the Northern Division of the Southern District of Mississippi, and else
defendants, CHRISTOPHER B. EPPS and CECIL MCCRORY, did kno .
conspire, and agree with each other and with other persons known and unknown
Jury to commit offenses against the United States in violation of Title 18, United
Section 1956, to wit: to knowingly conduct and attempt to conduct financial
affecting interstate commerce and foreign commerce, which transactions involv
of specified unlawful activity, that is, bribery and kickbacks, knowing that the
designed in whole or in part to conceal and disguise the nature, location, source,
control of the proceeds of specified unlawful activity, and that while conducting d attempting
to conduct such financial transactions, knew that the property involved in the
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transactions represented the proceeds of some form of unlawful activity, in violati nofTitle 18,
United States Code, Section 1956(a)(1)(B)(i).
The manner and means used to accomplish the objectives of the consp·
among others, the following:
50. During the time period of the conspiracy, defendant MCCRORY
large bribe payments to the financial institutions that held the mortgage for defen
home in Flowood, Mississippi, with EPPS later using the equity from the pr~~
several
specified unlawful activity to take .out a loan to purchase a condominium in Bilo · Mississippi,
thus concealing and disguising the nature and source of the proceeds from the
activity.
51. During the time period of the conspiracy, defendant MCCRORY
bribes and kickbacks to defendant EPPS, which EPPS would put in his safe at ho e until he was
ready to deposit such cash bribes into his various bank accounts or use such cash
cashier's checks, later structuring such deposits and purchases in order to conceal
the nature and source of these proceeds of this specified unlawful activity.
52. During the time period of the conspiracy, defendant MCCRORY
large bribe payment to defendant EPPS's Edward Jones Investment Account, fro which EPPS
was able to wire money and trade in his Biloxi condominium for a larger, more e
condominium in Pass Christian, Mississippi, thus continuing to conceal and dis · e the nature
and source of the proceeds of the specified unlawful activity.
All in violation of Section 1956(h), Title 18, United States Code.
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COUNTS 24-27
53. The allegations contained in paragraphs 1 through 52 of this indic
realleged and incorporated by reference as though fully set forth herein.
54. From in or about 2007 through in or about June 24, 2014, in Hinds d Rankin
County in the Northern Division of the Southern District of Mississippi, and else
defendants, CHRISTOPHER B. EPPS and CECIL MCCRORY, and others kn wn and
unknown to the Grand Jury, devised, intended to devise, and participated in a sch e and artifice
to defraud and deprive the citizens of the State of Mississippi, the State ofMississ ppi, and the
Mississippi Department of Corrections of money, property and the intangible righ to the honest
services of defendant EPPS and the concealment of material information.
55. The purpose of the scheme and artifice described in Count 1 was £ r ~efendant
EPPS to secretly use his official position to enrich himself and others by solici ·
gifts, payments, and other things of value from defendant MCCRORY in exc e for favorable
official action and for MCCRORY to enrich himself by secretly obtaining favora le official
action for himself, his companies, and his clients through corrupt means.
The scheme and artifice was carried in the following manner and means, ong others:
56. The defendant EPPS solicited and accepted gifts, payments, and o
value from defendant MCCRORY, as detailed below .
. 57. The defendant EPPS provided favorable official action on behalf
MCCRORY as requested and as opportunities arose, including the directing or a arding of
contracts or leases to companies owned or controlled by defendant MCCRORY r to companies
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that were paying MCCRORY consulting fees.
58. The defendants EPPS and MCCRORY took steps to hide, con
their activity and the nature and scope of their dealings with each other, including:
A. The wiring of money from one of defendant MCCRORY'
accounts to Wells Fargo Home Mortgage, the financial institution hoi
mortgage for defendant EPPS's condominium in Biloxi, Mississippi.
B. The wiring of money from defendant MCCRORY's Trac
business account to the Edward Jones investment account owned and
defendant EPPS, with MCCRORY falsely labeling the wire transacti n as a
consignment sale of farm equipment and similarly falsely recording tb wire
transaction in the books and records of the Tractor Store, in order to
disguise the scheme.
59. On or about the dates listed below, in Rankin and Hinds County ·
Division of the Southern District of Mississippi, and elsewhere, the defendants,
CHRISTOPHER B. EPPS and CECIL MCCRORY, for the purpose of execu
described scheme and artifice to defraud and deprive, transmitted or caused to be mitted by
means of wire communication in interstate commerce, the following writings, si
sounds:
COUNT AMOUNT PAID FOR THE BENE 24 $34,000.00 25 $14,000.00 26 $40,000.00 27 $50,000.00
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All in violation of Sections 1343, 1346, and 2, Title 18, United States Cod .
COUNTS 28-41
60. The allegations contained in paragraphs 1 through 59 of this indic
realleged and incorporated by reference as though fully set forth herein.
61. Title31, United States Code, Section 5313 and the regulations pro
thereunder require any financial institution that engages in a currency transaction ( ;g., a deposit
or withdrawal) in excess of $10,000 with a customer to report the transaction to th
of the Treasury by filing a Currency Transaction !teport ("CTR''). These regulatio
that multiple transactions be treated as a single transaction if the financial instituti n has
knowledge that they are by, or on behalf of, the same person, and they result in ei er currency
i-eceived or disbursed by the financial institution totaling more than $10,000 durin
business day.
62. Currency Transaction Reports are often used by law enforcement t
wide variety of illegal activities such as money laundering. Many individuals eng
illegal activities are aware of such reporting requirements and take active steps to e financial
institutions to fail to file CTRs, such as, for example, maldng multiple cash depos ts in amounts
not more than $10,000 on the same day or on consecutive days. These active st
referred to as "structuring." Structuring cash transactions to avoid triggering the
by a finartcial institution is prohibited by Section 5324(a), Title 31, United States
63. Between August 5, 2009 and June 24,2014, the defendant, C
EP·PS, deposited and caused to be deposited cash, or used cash or caused cash to
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purchase cashier's checks, totaling almost $700,000 utilizing four bank accounts
or controlled.
he owned
64. When the deposits were made, EPPS knew of the reporting reauirc~tnent for cash
transactions in excess of$10,000. To avoid having a CTRfiled, EPPS structured
transactions in amounts not greater than $10,000, as set forth below:
65. On or about the dates set forth below, in Rankin and Hinds cotmn~es
Northern Division of the Southern District of Mississippi and elsewhere, the detendant.
CHRISTOPHER B. EPPS, did knowingly and for the purpose of evading the
requirements of Section 5313(a), Title 31, United States Code, and the J.""""·UJ.Q.U.VJ.~
thereunder, structure, assist in structuring, and attempt to structure or assist in
following transactions with domestic financial institutions, and cause·and attempt cause such
institutions to fail to file Currency Transaction Reports required by Section 5313 currency
transactions in excess of $10,000, and did so while violating another law of the
COUNT DATE
28 8/6/09
9:16a.m.
10:15 a.m.
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41
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7/19/13
7/31113 9:07am.
All in violation of Sections 5324(a)(3) and 5324( d), Title 31, United
1010.100,1010.311 and 1010.313, Title31,CodeofFederalRegulations;andSec!:tion2, Title
18, United States Code.
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COUNT42-43
66. The allegations contained in paragraphs 1 through 65 of this indic
realleged and incorporated by reference as though fully set forth herein.
67. On or about the dates listed below, in Rankin and Hinds County in
Division of the District ofMississjppi, and elsewhere, the defendant, CHRISTOP B.
EPPS, did knowingly conduct and attempt to conduct a financial transaction affec
and foreign commerce, to wit, applying for and securing a loan and co11ducting a
both of which involved the proceeds of a specified unlawful activity, that is bribe
kickbacks from CECIL MCCRORY and others known and unknown to the Gran Jury,
knowing_that the transactions were designed in whole and in part to conceal and · guise, the
nature, location, source, ownership, and control of the proceeds of said specified
activity and that while conducting and attempting to conduct such financial trall.Sa(~
that the property involved in the financial transactions represented the proceeds of Qme form of
unlawful activity, specifically:
COUNT DATE TRANSACTION FINANOAL AMOUNT INSTITUTION
42 November 8, 2011 Mortgage for Biloxi Wells _Fargo $257,000.00 Condominium HomeMo e
43 June 12, 2013 Wire Transfer for Pass Edward Jones $200,000.00 Christian Condominium
All in violation of Sections 1956(aX1)(B)(i) and 2, Title 18, United States ode.
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COUNTS 44-49
68. That on or about the dates listed below, in Rankin County in the Northern
Division of the Southern District of Mississippi, and elsewhere, the defendant, CHRISTOPHER
B~ EPPS, a resident of Flowood, Mississippi, did willfully aid and assist in, and p1: :x;ure, counsel,
and advise the preparation and presentation to the Internal Revenue Service, of a U S.Individual
Income Tax Retuni, Form 1040, of CHRISTOPHER B. EPPS for the calendar ye~ hereinafter
specified. The subject returns were false and fraudulent as to material matters, in tpat they
represented that total income for EPPS and his wife on Line 22 of each individUal Form 1040
was as stated below, whereas, as the defendant then and there knew, the correct anc actual total
income for EPPS and his wife on Line 22 of each individual Form 1040 during the subject
cal endar years was actually higher as set forth below.
COUNT OFFENSE TAX YEAR TOTAL INCOME ACTl JALTOTAL DATE REPORTED I N'COME
44 March 3, 2009 2008 $205,540.00 $4 05,540.00 45 March 23, 2010 2009 $206,511.00 s~ 57,820.81 46 March 5, 2011 2010 $217,444.00 $~ 49,144.00 47 March 13, 2012 2011 $239,245.00 $~ 76,245.00 48 March 12, 2013 2012 $217,109.00 s~ 30,109.00 49 March 25,2014 2013 $209,901.00 s~ 86,901.00
All in violation of Section 7206(2), Title 26, United States Code.
NOTICE OF INTENT TO SEEK CRIMINAL FORFEITURE
69. As a result of committing the offenses as alleged in this Indictment, the defendants
shall forfeit to the United States all property involved in or traceable to property lnvolved in the
offenses, including but not limited to all proceeds obtained directly or indirectly from the offenses,
and all property used to· facilitate the offenses.
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70; The grand jury has determined that probable cause exists to believe the following
property is subject to forfeiture as u result of one or more of the offenses alleged in · s indictment:
1) Real property located at 1100 West Beach Boulevard, Unit 304, Harrison County, Mississippi, more particularly described as folio
Unit Number Three Hundred Four (304), PASS MARIANNE CONDOMINIUMS, a condominium according to the official map or plat thereof on file and on record in the office of the Chancery Clerk of the First Judicial District of Harrison County, Mississippi, in Plat Book 50 at page 6 thereof, together with an undivided interest in and to the common elements and appurtenances thereof, as set forth in the Declaration of Condominiums and therefore subject to that certain Declaration of Condominium recorded as Instrument #2007-8014-DJl and corrected and re-recorded as Instrument #2007-8385-D-Jl thereof;
2) Real property located at 511 Shalom Way, Flowood, Rankin Coun , Mississippi more particularly described as:.
LOT 22, LJNEAGE LAKE OF LAKELAND, PART 1 ED, a subdivision according to the map or plat thereof on file and of recor in the office·ofthe Chancery Clerk of Rankin Comity at Brandon, Missis ippi.in Plat Cabinet D at Slots 44, 45 and 46, reference to which map or plat-is hereby made in aid of and as a part of this description.
TOGETIIER WITH: an easement for ingress and egress and regress ver all private streets and right-of-ways by virtue of Article Vlli, Section 8.1, .2 and 8.7 of the covenants as recorded in Book 1042 at Page 490;
3) All funds on deposit in Edward Jones account numbered XXX-XX 64-1-0;
4) All funds on deposit in Edward Jones account numbered XXX-XX 11-1..;6;
5) All funds on deposit in Regions Bank account numbered XXXXXI
6) All funds on deposit in Regions Bank account numbered XXXXXI
7) All funds on deposit in Bank Plus account numbered XXXXX2116· ·
8) All funds on deposit in Mississippi Public Employees Credit
Page20 of21
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numbered XXXXX2469;
9) One (1) 2010 Mercedes Benz S550, VIN: WDDNG7BB6AA3317 7; and
10)0ne (1) 2007 Mercedes Benz S65 V12 AMG, VIN: WDDNG79 7A053800.
Further, if any property described above, as a result of any act or omissicm of the defendants: (a)
cannot be located upon the exercise of due diligence; (b) has been transferred or sol to, or deposited
with, a third party; (c) has been placed beyond the jurisdiction of the Court; (d) has S1lb~y
diminished in value; or (e) has been commingled with other J#perty. which ot be divided ..
without difficulty, then it is the intent of the United States to seek a judgment of
other property of the defendants, up to the value of the property described in this no ce or any bill of
particulars supporting it.
All pursuant to Section 98 t(a)(l XA) & (C), Title 18; United States Code, S ·on 982(aX2),
Title 18, United States Code, Section 730(a)-(e), Title 26, United States Code, Sec ·on 7303, Title
26, United States Code and Section 5317( c XI), Title 31, United States Code.
0 H. BRTITAIN Attorney for the United State , Acting Under Authority Conferred by 28 U .. C.§ 515
A TRUE BII.L: S/SIGNATURE REDACTED . . Foreperson of the Grand Jury
. 1bis indictment was returned in open court by the foreperson or deputy fo grand jury on this the t;t'-day of August, 2014. .
onofthe
UNITED STATES MAGISTRATE
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IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPPI
NORTHERN DIVISION
S UTHERN DISTRICT OF MISSIS~PPI
FILeD
j JUL 1 a!01s J ARTHUR JOhNSTON
BY DEPUTY UNITED STATES OF AMERICA
v.
CARLREDDIX
CRIMINAL NO. ~ ~ \k c,f QD l.ffKJ-f 18 usc§ 1349 18 USC§ 666(a)(2)
The Grand Jury charges:
At all times relevant to this indictment:
1. The Mississippi Department of Corrections (MDOC) was a s1~te government
agency as that term is defined in Section 666( d), Title 18, United States Cpde, and which
received benefits in excess of$10,000 annually between 2007 and 2014 under F~eral programs
providing Federal assistance to MDOC.
2. CHRISTOPHER B. EPPS was the commissioner of the MDOC.
3. The defendant, CARL REDDIX, was one of the owners of Health Assurance,
LLC.
4. Health Assurance, LLC was under contract with the State o Mississippi to
provide healthcare services to inmates at MDOC facilities.
5. Health Assurance, LLC obtained a contract from the MDOC to provide inmate
health care services at Walnut Grove Correctional Facility in 2008. This contract was renewed in
2011.
6. Health Assurance, LLC obtained contracts from the MDOC to provide inmate
health care services at East Mississippi Correctional Facility and Marshall Cow ty Correctional
Facility in 2012.
EXHIBIT
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7. Health Assurance, LLC obtained a contract to provide inmate h
at Wilkinson County Correctional Facility in 2013.
COUNT1
8. The allegations contained in paragraphs one through seven of this dictment are
realleged and incorporated herein by reference as though fully set forth herein.
9. From in or about 2012, and continuing until at least October 1, 20 4, in Hinds
County, in the Northern Division of the Southern District of Mississippi and else here, the
defendant, CARL REDDIX, did knowingly and intentionally combine, conspire, confederate,
and agree with CHRISTOPHER B. EPPS, to commit one or more of the followin offenses: to
devise and intend to devise a scheme and artifice to defraud the Mississippi Dep ent of
Corrections and the State of Mississippi and its citizens of their intangible right t
CHRISTOPHER B. EPPS' s honest services, through bribes and kickbacks, by us of interstate
wire transmissions, in violation of Sections 1343 and 1346, Title 18, United State Code.
10. It was the object of the conspiracy that defendant CARL REDD
or provide kickbacks to CHRISTOPHER B. EPPS, in exchange for the awarding
retention of contracts to HEALTH ASSURANCE, LLC for inmate health care se
MDOC facilities;
11. In furtherance of the conspiracy and to carry out its objectives, the following acts,
among others, were committed:
12. Beginning in 2012, the defendant, CARL REDDIX, began regul
CHRISTOPHER B. EPPS with cash payments in the amount of $6,000.00 per m nth, in
exchange for CHRISTOPHER B. EPPS using his in:tl.uence as commissioner of
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benefit REDDIX and his company, Health Assurance, LLC financially.
13. Beginning in 2013, with the addition of the contract to provide·
services to the Wilkinson County Correctional Facility, the defendant, CARL
increased his cash payments by an additional $2,000.00 per month and began re
CHRISTOPHER B. EPPS with cash payments in the amount of $8,000.00 perm nth, in
exchange for CHRISTOPHER B. EPPS using his influence as commissioner of OC to
benefit REDDIX and his company, Health Assurance, LLC financially.
14. On or about each of the following dates of August 1, 2014, September 2,
2014, the defendant, CARL REDDIX, paid cash to CHRISTOPHER B. EPPS.
$9,000.00.
15. On or about October 1, 2014, the defendant, CARL REDDIX,
CHRISTOPHER B. EPPS in the amount of$9,500.00.
All in violation of Sections 1349 and 2, Title 18, United States Code.
COUNT2
16. The allegations contained in paragraphs one through fifteen of this indictment are
realleged and incorporated herein by reference as though fully set forth herein.
17. On or about May 1, 2014, in Hinds County, in the Northern ivision of the
Southern District of Mississippi and elsewhere, the defendant, CARL REDD
and corruptly give, offer, and agree to give something of value, that is, $8,00 .00 in cash, to
CHRISTOPHER B. EPPS, with intent to influence and reward CHRISTOP
connection with the business, transaction, and series of transactions of e Mississippi
Department of Corrections, involving something of value of $5,000.00 or m re, that is, the
awarding and the retention of contracts to Health Assurance, LLC for inmate h th care services
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at MDOC.facilities.
All in violation of Sections 666(a)(2), and 2 Title 18, United States Code.
COUNT3
18. The allegations contained in paragraphs one through seventeen of · s indictment
are realleged and incorporated herein by reference as though fully set forth herein
19. On or about June 1, 2014, in Hinds County, in the Northern ivision of the
Southern District of Mississippi and elsewhere, the defendant, CARL REDDIX did knowingly
and corruptly give, offer, and agree to give something of value, that is, $8,00 .00 in cash, to
CHRISTOPHER B. EPPS, with intent to influence and reward CHRISTOP
connection with the business, transaction, and series of transactions of e Mississippi
Department of Corrections, involving something of value of $5,000.00 or m re, that is, the
awarding and the retention of contracts to Health Assurance, LLC for inmate heal care services
at MDOC facilities.
All in violation of Sections 666(a)(2), and 2 Title 18, United States Code.
COUNT4
20. The allegations contained in paragraphs one through nineteen of s indictment
are realleged and incorporated herein by reference as though fully set forth herein
21. On or about July 1, 2014, in Hinds County, in the Northern ivision of the
Southern District of Mississippi and elsewhere, the defendant, CARL REDD
and corruptly give, offer, and agree to give something of value, that is, $8,50 .00 in cash, to
CHRISTOPHER B. EPPS, with intent to influence and reward CHRISTOP
connection with the business, transaction, and series of transactions of e Mississippi
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Department of Corrections, involving something of value of $5,000.00 or m re, that is, the
awarding and the retention of contracts to Health Assurance, LLC for inmate h
at MDOC facilities.
All in violation of Sections 666(a)(2), and 2 Title 18, United States Code.
COUNTS
22. The allegations contained in paragraphs one through twenty-one o this
indictment are realleged and incorporated herein by reference as though fully set orth herein.
23. On or about August 1, 2014, in Hinds County, in the Northern Di
Southern District of Mississippi and elsewhere, the defendant, CARL REDDIX, "d knowingly
and corruptly give, offer, and agree to give something of value, that is, $9,000.00 cash, to
CHRISTOPHER B. EPPS, with intent to influence and reward CHRISTOPHER . EPPS in
connection with the business, transaction, and series of transactions of the Missis ippi
Department of Corrections, involving something of value of$5,000.00 or more, at is, the
awarding and the retention of contracts to Health Assurance, LLC for inmate heal care services
at MDOC facilities.
All in violation of Sections 666(a)(2), and 2 Title 18, United States Code.
COUNT6
24. The allegations contained in paragraphs one through twenty-three
indictment are realleged and incorporated herein by reference as though fully set
25. Ori or about September 2, 2014, in Hinds County, in the Northern ivision of the
Southern District of Mississippi and elsewhere, the defendant, CARL REDDIX, · d knowingly
and corruptly give, offer, and agree to give something of value, that is, $9,000.00 cash, to
CHRISTOPHER B. EPPS, with intent to influence and reward CHRISTOPHER . EPPS in
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connection with the business, transaction, and series of transactions of the Missis ippi
Department of Corrections, involving something of value of$5,000.00 or more, tis, the
awarding and the
retention of contracts to Health Assurance, LLC for inmate health care services a MDOC
facilities.
All in violation of Sections 666(a)(2), and 2 Title 18, United States Code.
COUNT?
26. The allegations contained in paragraphs one through twenty-five o this
indictment are realleged and incorporated herein by reference as though fully set orth herein.
27. On or about October I, 2014, in Hinds County, in the Northern Di "sion of the
Southern District of Mississippi and elsewhere, the defendant, CARL REDDIX, "d knowingly
and corruptly give, offer, and agree to give something of value, that is, $9,500.00 cash, to
CHRISTOPHER B. EPPS, with intent to influence and reward CHRISTOPHER . EPPS in
connection with the business, transaction, and series of transactions of the Missis ippi
Department of Corrections, involving something of value of$5,000.00 or more, tis, the
awarding and the retention of contracts to Health Assurance, LLC for inmate heal care services
at MDOC facilities.
All in violation of Sections 666(a)(2), and 2 Title 18, United States Code.
NOTICE OF INTENT TO SEEK CRIMINAL FORFEITURE
As a result of committing the offense alleged in this Indictment, the defen
forfeit to the United States all property involved in or traceable to property involv
offense, including but not limited to all proceeds obtained directly or indirectly fr m the offense,
and all property used to facilitate the offense. Further, if any property described ove, as a result
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of any act or omission of the defendant: (a) cannot be located upon the exercise
(b) has been transferred or sold to, or deposited with, a third party; (c) has been
the jurisdiction of the Court; (d) has been substantially diminished in value; or ( e has been
commingled with other property, which cannot be divided without difficulty, the it is the intent . ,,
of the United States to seek a judgment of forfeiture of any other property of the
the value of the property described in this notice or any bill of particulars suppo it.
All pursuant to Section 981(a)(1)(A) & (C), Title 18, United States Code
2461, Title 28, United States Code.
Acting United States Attorney
. . UE Bll.L' . A :aNA~ REDACTED
-.SL . --= -T·rtne·~Jury .... Foreperson o . · · ' '
;.. . .. , ~ ~ -r:' .· ·~ ,. .. ;_:·
This indictment was returned in open court by the foreperson or deputy fo grand jury on this the \3 day of j 1 J \j , 2016.
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IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPPI
NORTHERN DIVISION
UNITED STATES OF AMERICA.
v.
SAM WAGGONER
The United States Attorney charges:
At all times relevant to this information:
CRIMINAL NO. 3 : J
18 USC§ 666(a)(2)
l. The Mississippi Department of Corrections (MDOC) was a state govemme t agency as
that term is defined in Section 666(d), Title 18, United States Code, and which recei ed benefits
in excess of$10,000 annually between 2007 and 2014 under Federal programs provi 'ng Federal
assistance to MDOC.
2. Global Tel-Link (GTL) was under contract with the State of Mississipp to provide
telephone services to inmates at MDOC facilities.
3. The defendant, SAM WAGGONER, was a paid consultant for GTL.
4. GTL paid the defendant, SAM \VAGGONER, five (5) percent of the reven e generated
by the inmate telephone services contracts it had with the State of Mississippi.
5. CHRISTOPHER B. EPPS was the commissioner of the MDOC.
6. That beginning sometime in or about 2012, and continuing until at least Aug t 26, 2014,
in Hinds County, in the Northern Division of the Southern District of Mississippi an elsewhere,
the defendant, SAM WAGGONER, did knowingly and corruptly give, offer, or a ree to give
something of value to CHRISTOPHER B. EPPS, with intent to influence
CHRISTOPHER B. EPPS in connection with the business, transaction, or series of ansactions
of the Mississippi Department of Corrections, involving something of value of 5.000.00 or
EXHIBIT
I C
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more, that is, the awarding and the retention of contracts to WAGGONER'S emp oyer, GTL,
for inmate telephone services at MDOC facilities. Specifically, on or about July 30, 014, and on
or about August 26, 2014, the defendant, SAM WAGGONER, paid kickbacks in · e form of
cash generated by his monthly commission from GTL to CHRISTOPHER B. EPPS.
All in violation of Section 666(a)(2), Title 18, United States Code.
NOTICE OF INTENT TO SEEK CRIMINAL FORFEITURE
7. As a result of committing the offense alleged in this Indictment, the defendant shall
forfeit to the United States all property involved in or traceable to property involved i the
offense, including but not limited to all proceeds obtained directly or indirectly from e offense,
and all property used to facilitate the offense.
The defendant shall forfeit a money judgment in the amount of $200,000.00.
8. Further, if any property described above, as a result of any act or omission of e
defendant: (a) cannot be located upon the exercise of due diligence; (b) has been tran
sold to, or deposited with, a third party; (c) has been placed beyond the jurisdiction o the Court;
(d) has been substantially diminished in value; or (e) has been commingled with othe property,
which cannot be divided without difficulty. then it is the intent of the United States to seek a
judgment of forfeiture of any other property of the defendant, up to the value of the p
described in this notice or any bill of particulars supporting it.
All pursuant to Section 98I(a)(l)(A) & (C), Title 18, United States Code and ection
2461, Title 28, United States Code.
Acting United States Attorney
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UNITED STATES OF AMERICA
v.
IRB BENJAMIN 18 usc§ 1349 18 USC § 666(a)(2)
The Grand Jury charges:
At all times relevant to this indictment:
1. The Mississippi Department of Corrections (MDOC) was a state govemme t agency as
that term is defined in Section 666(d), Title 18, United States Code, and which recei ed benefits
in excess of$10,000 annually between 2007 and 2014 under Federal programs provi ing Federal
assistance to MDOC.
2. Mississippi Correctional Management (MCM) was under contract with e State of
Mississippi to provide alcohol and drug treatment services to inmates at Mississippi epartment
of Corrections (MDOC) Correctional Work Center (CWC) facilities in Alco County,
Mississippi, and in Simpson County, Mississippi.
3. The total value of the contract between the State ofMississippi and MCM for cobol and
drug treatment contracts was $774,000.00.
4. MCM was under contract with Alcorn, Washington and Chickasaw Counti
consulting services to ensure each of the Regional Correctional Facilities could m
Correctional Association accreditation standards during the construction of the respective
facilities, and to ensure that each facility maintained the accreditations during their subsequent
operations.
5. MCM was paid about $399,260.00 as a result of its contract with Alcorn Coun y.
EXHIBIT
I D
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6. MCM was paid about $245,080.00 as a result of its contract with W ashingto County.
7. MCM was paid $217,900.00 as a result of its contract with Chickasaw Coun
8. The defendant, IRB BENJAMIN, was the owner of MCM.
9. Beginning in or about April 2014, Carter Gobal Lee Facility Managemen (CGL) was
under contract with MDOC to provide maintenance services to MDOC Regional Correctional
Facilities.
10. The defendant, IRB BENJAMIN, was employed by CGL as a consultant.
11. The total value of the contTact between the State of Mississippi and CGL for aintenance
services was $4,800,000.00.
12. CHRISTOPHER B. EPPS was the commissioner of the MDOC.
COUNT 1
13. · The allegations contained in paragraphs one through twelve ofthis indictmen are
realleged and incorporated herein by reference as though fully set forth herein.
14. From in or about 2010, and continuing until at least August 27, 2014, in Hin
the Northern Division of the Southern District of Mississippi and elsewhere, the defe dant, I.RB
BENJAMIN, did knowingly and intentionally combine, conspire, confederate, and
CHRISTOPHER B. EPPS, to commit one or more of the following offenses: to devi e and
intend to devise a scheme and artifice to defraud the Mississippi Department of Co
the State of Mississippi and its citizens of their intangible right to CHRISTOPHER
honest services, through bn"bes and kickbacks, by use of interstate wire transmissio
violation of Sections 1343 and 1346, Title 18, United States Code.
15. It was the object of the conspiracy that defendant IRB BENJAMIN would b be or
provide kickbacks to CHRISTOPHER B. EPPS, in exchange for the awarding and th retention
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of contracts to BENJAMIN and MCM for alcohol and drug treatment services at OC
facilities; the exercise of CHRISTOPHER B. EPPS'S influence in Alcorn, Washin
Chickasaw counties with regard to MCM obtaining consulting contracts relating to e respective
Regional Correctional Facilities built and operated in those counties; and obtaining
with CGL as a consultant.
16. In furtherance of the conspiracy and to carry out its objectives, the following cts, among
others, were committed:
17. Beginning in 2010, the defendant, IRB BENJAMIN, began regularly provid ng
CHRISTOPHER B. EPPS with cash payments in varying amounts, generally $1,000 00 to
$2,000.00 per payment, in exchange for CHRISTOPHER B. EPPS using his influen e as
commissioner ofMDOC to benefit BENJAMIN and his company, MCM, financial! .
18. Beginning in 2010, and continuing until June 24,2014, the defendant, IRB
routinely paid cash bribes to CHRISTOPHER B. EPPS in varying amounts, which
had obtained through the contract between MCM and MDOC for providing alco ol and drug
treatment services at MDOC facilities in Alcorn and Simpson counties.
19. That from in or about April, 2014, until in or about June 24,2014, the defen
BENJAMIN, was paid $2,000.00 per month by CGL, $600 of which BENJAMIN p . d to
CHRISTOPHER B. EPPS each month.
All in violation of Sections 1349 and 2, Title 18, United States Code.
COUNT2
20. The allegations contained in paragraphs one through nineteen of this indictm t are
realleged and incorporated herein by reference as though fully set forth herein.
21. On or about August 27,2014, in Hinds County, in the Northern Division of e Southern
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District of Mississippi and elsewhere, the defendant, IRB BENJAMIN, did kn wingly and
corruptly give, offer, or agree to give something of value to CHRISTOPHER B. EPPS, with
intent to influence or reward CHRISTOPHER B. EPPS in connection with e business,
transaction, or series of transactions of the Mississippi Department of Correctio , involving
something of value of $5,000.00 or more, that is, the awarding and the retention o
BENJAMIN and MCM for alcohol and drug treatment services at MDOC faciliti in Alcorn
and Simpson counties.
All in violation of Sections 666(a)(2), and 2 Title 18, United States Code.
COUNT3
22. The allegations contained in paragraphs one through twenty one of this indic ent are
realleged and incorporated herein by reference as though fully set forth herein.
23. That from in or about April, 2014, until in or aboUt September, 2014, in Hin County, in
the Northern Division of the Southern District of Mississippi and elsewhere, the de£1 ndant, IRB
BENJAMIN, did knowingly and corruptly give, offer, or agree to give something of value to
CHRISTOPHER B. EPPS, with intent to influence or reward CHRISTOPHER . EPPS in
connection with the business, transaction, or series of transactions of MDO involving
something of value of $5,000.00 or more, that is, the defendant, IRB BENJ , was paid
$2,000.00 per month by COL, $GOO of which BENJAMIN paid to CHRISTOP
each month in return for EPPS assisting BENJAMIN obtain employment with CGL as a
consultant
All in violation of Sections 666(a)(2), and 2 Title 18, United States Code.
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NOTICE OF INTENT TO SEEK CRIMINAL FORFEITURE
24. As a result of committing the offense alleged in this Indictment, the defend t shall
forfeit to the United States all property involved in or traceable to property involve
offense, including but not limited to all proceeds obtained directly or indirectly fro
and all property used to facilitate the offense. Further, if any property described abo e, as a result
of any act or omission of the defendant: (a) cannot be located upon the exercise of d e diligence;
(b) has been transferred or sold to, or deposited with, a third party; (c) has been plac beyond
the jurisdiction of the Court; (d) has been substantially diminished in value; or (e) h
commingled with other property, which cannot be divided without difficulty, then it is the intent
of the United States to seek a judgment of forfeiture of any other property of the de
the value of the property described in this notice or any bill of particulars supportin
All pursuant to Section 981(a)(l)(A) & (C), Title 18, United States Code an
2461, Title 28, United States Code.
A TRUE BILL: S/SIGNA TURE REDACTED Foreperson of the Grand Jury
Acting United States Attorney
-
This indictment was returned in open court by the foreperson or deputy fore rson of the grandjury on this the £ day of August, 2015.
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IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPPI
NORTHERN DIVISION
UNITED STATES OF AMERlCA
JUL 25 2016
BY
v. CRIMINAL NO. 3.'1(.,-e, -54 1+1W-FKt3
MARK LONGORIA 18USC§371
The United States Attorney charges:
At all times relevant to this information:
t. The Mississippi Department of Corrections (MDOC) was a state government
that term is defined in Section 666(d), Title 18, United States Code, and which receive benefits
in excess of$10,000 annually between 2013 and 2014 under Federal programs providi g Federal
assistance to MDOC.
2. CHRISTOPHER B. EPPS was the commissioner of the MDOC.
3. The defendant, MARK LONGORIA, was an officer of Drug Testing Corp ration of
Houston, Texas.
4. ln August of 2013, the MDOC awarded Drug Testing Corporation the contrac to sell to
the MDOC drug test cups for drug screening.
5. On or about August 1, 2013, Drug Testing Corporation entered a commission greement
with Investigative Research, Inc., a company owned by CECIL MCCRORY.
6. On or about August 20, 2013, Drug Testing Corporation invoiced the MDOC r the sale
of drug test cups in the amount of $632,336.25.
7. On or about September 16, 2013, after receiving payment from the MDOC, Dr g Testing
Corporation remitted a check to Investigative Research, Inc., in the amount of $194,83 .50.
EXHIBIT
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8. On or about May 20, 2014, Drug Testing Corporation invoiced the MDOC for a second
sale of drug test cups in the amount of $149,940.00.
9. On or about June 17, 2014, after receiving p;;~.yment from the MDOC, Dru Testing
Corporation remitted a check to Investigative Research, Inc., in the amount of$34,997. 4.
COUNT I
I 0. The allegations contained in paragraphs one through nine of this indictment are ealleged
and incorporated herein by reference as though fully set forth herein.
11. From in or about August, 2013, and continuing until at least August, 2014, in H nds and
Rankin Counties, in the Northern Division of the Southern District of Mississippi and e sewhere,
the defendant, MARK LONGORIA, did knowingly and intentionally combine, consp"re,
confederate, and agree with CHRISTOPHER B. EPPS and CECIL MCCRORY, to infl ence or
reward CHRISTOPHER B. EPPS in connection with the business, transaction, or serie of
transactions ofthe Mississippi Department of Corrections, involving something of val e of
$5,000.00 or more, that is, the awarding and the retention of contracts to Drug Testing
Corporation, for drug test cups at MDOC facilities, in violation of Section 666(a)(2), T tie 18,
United States Code.
12. It was the object of the conspiracy that defendant MARK LONGORIA would bribe or
provide kickbacks to CHRISTOPHER B. EPPS by the use of CECIL MCCRORY's c mpany,
Investigative Research, Inc., in exchange for the awarding and the retention of contrac s to Drug
Testing Corporation for drug testing cups at MDOC facilities;
13. In furtherance of the conspiracy and to carry out its objectives, the following a ts, among
others, were committed:
14. On September 16, 2013, the defendant, MARK LONGORIA, through Drug esting
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Corporation, paid Investigative Research, Inc., a $194,837.50 commission fee kno
CECIL MCCRORY would provide CHRISTOPHER B. EPPS with cash payments ut of the fee
in exchange for the influence of CHRISTOPHER B. EPPS as commissioner of MD
LONGORIA and his company, Drug Testing Corporation, financially.
15. On June 17, 2014, the defendant, MARK LONGORIA, through Drug Testi g
Corporation, paid Investigative Research, Inc., a $34,997.64 commission fee knowi g that
CECIL MCCRORY would provide CHRISTOPHER B. EPPS with cash payments t of the fee,
in exchange for the influence of CHRISTOPHER B. EPPS as commissioner of MD
LONGORIA and his company, Drug Testing Corporation, financially.
All in violation of Section 371, Title 18, United States Code.
NOTICE OF INTENT TO SEEK CRIMINAL FORFEITURE
As a result of committing the offense alleged in this Indictment, the defend
forfeit to the United States all property involved in or traceable to property involved the
offense, including but not limited to all proceeds obtained directly or indirectly from the offense,
and all property used to facilitate the offense.
The defendant shall forfeit a money judgment in the amount of$131,389.90.
Further, if any property described above, as a result of any act or omission of e
defendant: (a) cannot be located upon the exercise of due diligence; (b) has been tran ferred or
sold to, or deposited with, a third party; (c) has been placed beyond the jurisdiction o the Court;
(d) has been substantially diminished in value; or (e) has been commingled with othe property,
which cannot be divided without difficulty, then it is the intent
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of the United States to seek a judgment of forfeiture of any other property of the defend nt, up to
the value of the property described in this notice or any bill of particulars supporting it.
All pursuant to Section 98l(a)(l)(A) & (C), Title 18, United States Code and Se tion
2461, Title 28, United States Code.
Acting United States Attorney
A ~~~~ cc)py: i HER~~YCERT FY BY: . U~O~TON, CU~RK . / ~v~
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IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPPI
NORTHERN DNISION
~DSTATESOF~CA
8Y
Rrf DISTRICT OF MISSISSIPPI
r---~_..s....:...:l L=.t. 0
UL 13-20161 ARTHUR~
DEPU1Y
v. CRIMINAL NO.3
1
1 \ C i( s \ \t'tO .~Jt.f>: TERESA K. MALONE 18 usc§ 1349
18 USC§ 666(a)(2)
The Grand Jury charges:
At all times relevant to this indictment:
1. The Mississippi Department of Corrections (MDOC) was a state government
agency as that term is defined in Section 666( d), Title 18, United States Cod , and which
received benefits in excess of S 10,000 annually between 2008 and 2014 under Fed programs
providing Federal assistance to MDOC.
2. From about 2008 through 2014, AdminPros, LLC was under mul
with the State of Mississippi to provide medical vendor monitoring and Medi · d eligibility
services to the Mississippi Department of Corrections (MDOC).
3. The defendant, TERESA K. MALONE, was a paid consultant fo AdminPros,
LLC.
4. AdminPros, LLC paid the defendant, TERESA K. MALONE,
$5,000.00 per month from October of2010 through July 17, 2014, of the revenue
the contractual services with the MDOC.
S. CHRISTOPHER B. EPPS was the commissioner of the MDOC.
COUNT I
6. The allegations contained in paragraphs one through five of this indi
realleged and incorpomted herein by reference as though fully set forth herein.
EXHIBIT
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7. From in or about 2010, and continuing until at least July of 2014, in ·nels
County, in the Northern Division of the Southern District of Mississippi and elsewh re, the
defendant, TERESA K. MALONE, did knowingly and intentionally combine, co
confederate, and agree with CHRISTOPHER B. EPPS, to commit one or more ofth
offenses: to devise and intend to devise a scheme and artifice to defraud the Mississi pi
Department of Corrections and the State of Mississippi and its citizens of their intan ·ble right to
CHRISTOPHER B. EPPS's honest services, through bribes and kickbacks, by use o interstate
wire transmiS$iOns, in violation of Sections 1343 and 1346, Title 18, United States
8. It was the object of the conspiracy that defendant TERESA K. n.a.n~
bribe or provide kickbacks to CHRISTOPHER B. EPPS, in exchange for the aUIG•...t;r.
retention of contracts to AdminPros, LLC and, for the exercise of CHRISTOPHER
influence in obtaining a consulting agreement for TERESA K. MALONE with A · s,
LLC.
9. In furtherance of the conspiracy and to carry out its objectives, the fo owing acts,
among others, were committed:
10. Beginning in 2010, the defendant, TERESA K. MALONE, began
providing CHRISTOPHER B. EPPS with cash payments in varying amounts, gene
$1,000.00 to $1,750.00 per payment, in exchange for CHRISTOPHER B. EPPS'S .
commissioner ofMDOC to benefit TERESA K. MALONE, financially.
11. On or about July 17, 2014, the defendant, TERESA K. MALO
kickback to CHRISTOPHER B. EPPS in the amount of $1,750.00, which
obtained through her consulting agreement with AdminPros, LLC.
12. That from in or about 2010, until July 17, 2014, the defendant, TE
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MALONE, was paid no less than $170,000.00 by AdminPros, LLC of which MAL NE would
kickback cash to CHRISTOPHER B. EPPS.
All in violation of Sections 1349 and 2, Title 18, United States Code.
COUNT2
13. The allegations contained in paragraphs one through twelve of this· dictment are
realleged and incorporated herein by reference as though fully set forth herein.
14. On or about July 17, 2014, in Hinds County, in the Northern Di 'sion of the
Southern District of Mississippi and elsewhere, the defendant, TERESA K. ONE, did
knowingly and corruptly give, offer, and agree to give something of value, that is, $1,750.00 in
cash, to CHRISTOPHER B. EPPS, with intent to influence and reward CHRI TOPHER B.
EPPS in connection with the business, transaction, and series of transactions of
Department of Corrections, involving something of value of $5,000.00 or mo
awarding and the retention of multiple contracts to AdminPros, LLC for m
monitoring and Medicaid eligibility services.
All in violation of Section 666(a)(2), Title 18, United States Code.
NOTICE OF INTENT TO SEEK CRIMINAL FORFEITURE
As a result of committing the offense alleged in this Indictment, the defen shall
forfeit to the United States all property involved in or traceable to property involved in the
offenses, including but not limited to all proceeds obtained directly or indirectly fro the
offenses, and all property used to facilitate the offenses.
Further, if any property described above, as a result of any act or omission o the
defendant: (a) cannot be located upon the exercise of due diligence; (b) has been ferred or
sold to, or deposited with, a third party; (c) has been placed beyond the jurisdiction f the Court;
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(d) has been substantially diminished in value; or (e) has been commingled with oth property,
which cannot be divided without difficulty, then it is the intent of the United States o seek a
judgment of forfeiture of any other property of the defendants, up to the value of th property
described in this notice or any bill of particulars supporting it.
All pursuant to Section 981(a)(l)(A) & (C), Title 18, United States Code an
2461, Title 28, United States Code.
A TRUE BILL: S/SIGNATURE REDACTED Foreperson of the Grand Jury
OL Acting United States Attorney
This indictment was returned in open court by the foreperson or deputy fore
grand jury on this the 13!-fl day of J Jt , 2016.
nofthe
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ICTOF~PI
.--__._Frill! D
IN THE UNITED STATES DISTRICT COURT JU _;3 -2016] FOR TilE SOUTHERN DISTRICT OF MISSISSIPP n.JOh:'w'STON
NORTHERN DIVISION t.!av!.:===F===~oa>tllY~
UNITED STATES OF AMERICA
v. cRIMINAL No. 3~ 1 ovlfi lf(tp-ia GUY E. "BUTCH'' EVANS 18 usc§ 1349
18 USC § 666(a)(2) The Grand Jury charges:
At all times relevant to this indictment:
1. The Mississippi Deparbnent of Corrections (MDOC) was a state ovemment
agency as that term is defined in Section 666(d), Title 18, United States Code, and which
received benefits in excess of$10,000 annually between 2007 and 2014 under Fed programs
providing Federal assistance to MDOC.
2. CHRISTOPHER B. EPPS was the commissioner of the MDOC.
3. At all times relevant to the indictment, the defendant, GUY E. "BUTCH"
EVANS, was a licensed insurance sales agent and the owner of Insurance Premi Services,
LLC, an insurance company licensed to do business in Mississippi.
4. CHRISTOPHER B. EPPS through official action made the defen t Broker of
Record for MDOC in September of2012. As Broker of Record for MDOC, GUY E. "BUTCH"
EVANS had exclusive access to sell insurance policies and products to MDOC employees.
After becoming Broker of Record, the defendant sold insurance policies and produc , to include
Colonial Life and Accident Insurance Company, ~AlwaysCare, and Humana, to MDOC
employees and received a commission from these companies for policies sold.
COUNT 1
5. The allegations contained in paragraphs one through four of this in ictment are
EXHIBIT
I c;
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realleged and incorporated herein by reference as though fully set forth herein.
6. From in or about 2012, and continuing until at least May 31, 201 , in Hinds
County, in the Northern Division of the Southern District of Mississippi and el where, the
defendant, GUY E. "BUTCH" EVANS, did knowingly and intentionally combin , conspire,
confederate, and agree with CHRISTOPHER B. EPPS, to commit one or more of following
offenses: to devise and intend to devise a scheme and artifice to defraud the Mississippi
Department of Corrections and the State of Mississippi and its citizens of their intan ble right to
CHRISTOPHER B. EPPS's honest services, through bribes and kickbacks, by use f interstate
wire transmissions, in violation of Sections 1343 and 1346, Title 18, United States C
7. It was the object ofthe conspiracy that defendant GUY E. "BUTC "EVANS
would bribe or provide kickbacks to CHRISTOPHER B. EPPS, in exchange fi favorable
official action as requested, and for EVANS to enrich himself, such as, the aw · ng of the
position of Broker of Record to EVANS for the exclusive right to sell insuranc to MDOC
employees;
8. In furtherance of the conspiracy and to carry out its objectives, the fol owing acts,
among others, were committed:
9. Beginning in January 2013, the defendant, GUY E. "BUTCH" EV S, began
regularly providing CHRISTOPHER B. EPPS with cash payments in varying amoun
$1 ,400.00 to $I, 700.00 per payment, in exchange for CHRISTOPHER B. EPPS as
of MDOC naming EVANS Broker of Record and financially benefited EV
company, Insurance Premium Services, LLC.
10. On or about April 30, 2014, for the purpose of executing the abo e-described
scheme and artifice to defraud and deprive, the defendant, GUY E. "BUT EVANS,
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transmitted and caused to be transmitted by means of wire communication i interstate
commerce, the following writings, signals, and sounds: to wit, a wire transfer from C lonial Life
and Accident Insurance Company to First Commercial Bank account number JPQOOC.XJOID(
xxx1557 in the amount of$2,906.36.
11. On or about May 7, 2014, for the purpose of executing the abov -described
scheme and artifice to defraud and deprive, the defendant, GUY E. "BUTCH EVANS,
transmitted and caused to be transmitted by means of wire communication · interstate
commerce, the following writings, signals, and sounds: to wit, a wire transfer from C lonial Life
and Accident Insurance Company to First Commercial Bank account number XXJOOC.XJOI:X
xxx1557 in the amount of $520.62.
12. On or about May 27, 2014, the defendant, GUY E. "BUTCH" EV S, paid a
cash bribe to CHRISTOPHER B. EPPS of approximately $1,900.00 which EVANS h d obtained
through the commission received from Colonial Life and Accident Insurance C mpany for
providing insurance services to MDOC employees.
13. On or about May 29, 2014, for the purpose of executing the abo
scheme and artifice to defraud and deprive, the defendant, GUY E. "BUTCH EVANS,
transmitted and caused to be transmitted by means of wire communication · interstate
commerce, the following writings, signals, and sounds: to wit, a wire transfer from C lonial Life
and Accident Insurance Company to First Commercial Bank account number XDCXX:XJOI:X
xxxl557 in the amount of$2,913.40
14. That from in or about January 2013, until in or about May, 2014, th defendant,
GUY E. "BUTCH" EVANS, was paid approximately $4,300.00 per month b Colonial,
$1,400.00to $1,700.00 ofwhich EVANS paid to CHRISTOPHER B. EPPS eachmo th.
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15. The defendant took steps to hide, conceal, and cover up his activity an the nature
and scope of his dealings with CHRISTOPHER B. EPPS including meeting in the p king lot of
MDOC headquarters or a restaurant to give the bribe in a white envelope.
All in violation of Sections 1349 and 2, Title 18, United States Code.
COUNT2
16. The allegations contained in paragraphs one through fifteen of this in · ctment are
realleged and incorporated herein by reference as though fully set forth herein.
17. That from in or about January, 2013, until in or about May, 201
County, in the Northern Division of the Southern District of Mississippi and els where, the
defendant, GUY E. "BUTCH" EVANS, did knowingly and corruptly give, offer,
give something of value to CHRISTOPHER B. EPPS, with intent to influence or reward
CHRISTOPHER B. EPPS in connection with the business, transaction, or series of ctions
of MDOC, involving something of value of $5,000.00 or more, that is, the defen t, GUY E.
"BUTCH" EVANS, was paid a commission of approximately $4,300.00 per month y Colonial
Life and Accident Insurance Company, $1,400.00 to $1,700.00 of which EV
CHRISTOPHER B. EPPS each month in return for EPPS making EVANS Broke
withMDOC.
All in violation of Sections 666(a)(2), and 2 Title 18, United States Code.
NOTICE OF INTENT TO SEEK CRIMINAL FORFEITURE
As a result of committing the offenses alleged in this Indictment, the defe dant shall
forfeit to the United States all property involved in or traceable to property invo ved in the
offense, including but not limited to all proceeds obtained directly or indirectly from e offense,
and all property used to facilitate the offense. Further, if any property described above as a result
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of any act or omission of the defendant: (a) cannot be located upon the exercise of d e diligence;
{b) has been transferred or sold to, or deposited with, a third party; (c) has been pi ced beyond
the jurisdiction of the Court; (d) has been substantially diminished in value; or ) has been
commingled with other property, which cannot be divided without difficulty, then it i
of the United States to seek a judgment of forfeiture of any other property of the de£
the value of the property described in this notice or any bill of particulars supporting t
All pursuant to Section 98l(a)(l)(A) & (C), Title 18, United States Code d Section
2461, Title 28, United States Code.
A TRUEBILL: S/SIGNATURE REDACTED Foreperson of the Grand Jury
, Acting United States Attorney ·
This indictment 7 -tr..ed in open court by the fureperson or deputy furep son of the grand jury on this the day of ~ , 2016.
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IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPP
SOUTHERN DIVISION
UNITED STATES OF AMERICA
v. CRIMINAL NO. l: \ lo c,c- I 0 ~ S 0- n,_i--l W
ROBERT SIMMONS 18 U.S.C. § 666(a){2)
The Acting United States Attorney charges:
At all times relevant to this Information:
1. The Mississippi Department of Corrections (hereafter referred to as " OC")
was a state government agency as that term is defined in Section 666(d), Title 18, un· ed States
Code, which received federal assistance in excess of $1 0,000.00 during each one-ye
between 2007 and 2014 under Federal programs providing Federal Assistance to the
2. Harrison County, Mississippi, was a local govemment. as that term is
Section 666(d), Title 18, United States Code, which received federal assistance in exc ss of
$10,000.00 during each one-year period between January 1, 2005 and December 31,
federal programs providing Federal Assistance to Harrison County, Mississippi.
3. Sentinel Offender Services, L.L.C. (hereafter referred to as "Sentinel") was under
contract since July 2012 with the State of Mississippi's MDOC to provide services to
monitoring and managing offenders sentenced to probation or parole. This monitorin
was awarded by the MDOC.
4. The defendant, ROBERT SIMMONS, was a local businessman from amson
County, Mississippi, who was paid a $4,000.00 a month consulting fee from SentineL
EXHIBIT
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5. Since approximately July 2012, SIMMONS provided monthly payme ts of
$1,400.00 to the Commissioner of the MDOC. These monthly payments, otherwise own as
kickbacks, or bribes, were deposited directly into the Commissioner's bank accounts.
SIMMONS would accomplish this by making the bank deposits utilizing branch loc ·ons in the
coastal counties of Mississippi.
6. SIMMONS set aside approximately thirty percent (30%) of his $4,00 .00 a
month consulting fee from Sentinel for taxes and subsequently split the remaining p of his fee
with the Commissioner of the MDOC.
7. AJA Management and Technical Services (hereafter referred to as"
under contract for a period of eighteen ( 18) months to provide construction managem nt services
to the MDOC for the expansion of the East Mississippi Correctional Facility and the alnut
Grove Youth Correctional Facility.
8. Throughout this eighteen (18) month period of time, SIMMONS recei ed a
monthly consulting fee from AJA of$10,000.00. Every month a portion of SIMMO
consulting fee was paid to the Commissioner of the MDOC.
9. A company obtained a contract to perform work on the East Mississip i
Correctional Facility and the Walnut Grove Youth Correctional Facility. The com
SIMMONS a consulting fee for a period of ten (1 0) months.
10. SIMMONS paid the Commissioner of the MDOC a portion of SIMM
consulting fee on approximately twenty (20) occasions during this ten (1 0) month pe od of time.
11. From approximately 2005 through 2011, Health Assurance L.L.C. con
the Harrison County Jail to provide inmate medical services. The owner of Health
L.L.C. paid SIMMONS a consulting fee, which at the end of the contract was as hi
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thousand dollars ($10,000.00) a month. Throughout this period oftime, SIMMONS
payments in the amount of$2,000.00 a month to a Harrison County Supervisor for
provided in securing the contract at the Harrison County Jail for inmate medical servi es.
12. Throughout the relevant time period referred to in paragraph 1, the Co issioner
of the MDOC exercised influence in the awarding of contracts with the MDOC.
13. Throughout the relevant time period referred to in paragraph 2, a duly lected
supervisor of Harrison County, Mississippi, exercised influence in the awarding of co tracts with
Harrison County, Mississippi.
I 4. That beginning sometime in or about 2005, and continuing until at I
26,2014, in Harrison County, in the Southern Division of the Southern District ofMi
and elsewhere, the defendant, ROBERT SIMMONS, did knowingly and corruptly gi e, offer,
and agree to give something of value to the Commissioner of the MDOC, with intent influence
and reward the Commissioner of the MDOC in connection with the business, transacti n, and
series of transactions ofthe Mississippi Department of Corrections, involving somethi g of value
of $5,000.00 or more, that is, the awarding and the retention of contracts to Sentinel
various services more particularly described in paragraphs 3 through 8.
15. That beginning sometime in or about 2005, and continuing until at 1
Harrison County, in the Southern Division of the Southern District of Mississippi and
the defendant, ROBERT SIMMONS, did knowingly and corruptly give, offer, and e to give
something of value to a duly elected supervisor of Harrison County, Mississippi with·
influence and reward the supervisor in connection with the business, transaction, and
transactions of Harrison County Mississippi involving something ofvalue of$5,000.0
that is, the awarding and the retention of contracts to Health Assurance L.L.C. for vari us
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services more particularly described in paragraph 11.
All in violation of Section 666(a)(2), Title 18, United States Code.
Attorney for the United States, Acting under Authority conferred by 18 u.s.c. § 515
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IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPPI
SOUTHERN DIVISION
UNITED STATES OF AMERICA
v.
WILLIAM MARTIN
The Grand Jury charges:
At all times relevant to this Indictment:
cRIMINAL No. J .: 1 ~ evl
18 U.S.C. § 666(a)(l)(B) 18 U.S.C. § 1512(c)(2)
FEB 18 2015
1. Harrison County, Mississippi, was a local government, as that term s defined in
Section 666(d), Title 18, Unitec! States Code, which received federal assistance
$10,000.00 during each one-year period beginning January 1, 2005, and ending 31,
2012.
2. The defendant, WILLIAM MARTIN, was a Supervisor for
and as such was an agent of Harrison County, as that term is defined in Section
United States Code.
COUNT I
3.
Harrison County, in the Southern Division of the Southern District of Mississippi, elsewhere,
the defendant, WILLIAM MARTIN, did corruptly solicit, demand, accept and to accept
multiple things of value from a person, intending to be influenced and rewarded · connection
value of $5,000.00 or more.
Page I of3
EXHIBIT
I r
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All in violation of Section 666(a)(l )(B), Title 18, United States Code.
COUNT2
4. That from in or about September 2014 through in or about '"'"''""'u"''
Harrison County, in the Southern Division of the Southern District of Mississippi,
the defendant, WILLIAM MARTIN, did corruptly solicit, demand, accept and
elsewhere,
thing of value from a person, intending to be influenced and rewarded in .. vuu~"'
transaction and series of transactions of the Harrison County, Mississippi, invol
value of $5,000.00 or more.
All in violation of Section 666(a)(l)(B), Title 18, United States Code.
COUNT3
On or about December 17, 2014, in Harrison County, in the Southern
Southern District of Mississippi, and elsewhere, the defendant, WILLIAM J.TAJl"lL.Ic .......
corruptly attempt to obstruct, impede, and influence an official proceeding, that
with a
did
MARTIN knowingly and intentionally attempted to corruptly influence a witness stlb,pocmac:a to
appear before a Federal Grand Jury proceeding and impede the providing of testimony
testifying by such witness to a Federal Grand Jury proceeding on matters relating
alleged in Counts 1 and 2 above.
All in violationofSection 1512(c)(2), Title 18, United States Code.
NOTICE OF INTENT TO SEEK CRIMINAL FORFEITURE
As a result of committing the offenses as alleged in this Indictment, the shall
forfeit to the United States all property involved in or traceable to property ·"'""'"""
Page 2 of3
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offenses, including but not limited to all proceeds obtained directly or ·
offenses, and all property used to facilitate the offenses. Further, if any n'N'\n,.,.,h,
above, as a result of any act or omission of the defendant: (a) cannot be located
of due diligence; (b) has been transferred or sold to, or deposited with, a third
defendant, up to the value of the property described in this notice or any bill
supporting it.
All pursuant to Sections 98l(a)(l)(C) and 982(a)(3), Title 18, United States and
Section 246l(c), Title 28, United States Code.
A TRUE BILL·
s/signature redacted Foreperson of~Ura.na Jury
United States Attorney
This indictment was returned in open court by the foreperson or deputy foreperson jury on this the /l~ay of February, 2015.
Page 3 of3
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IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSI~PI
NORTHERN DIVISION
UNITED STATES OF AMERICA
vs.
MARK LONGORIA
APPEARANCES:
CRIMINAL NO. 3:16CR54-HTW-FKB
PLEA HEARING
BEFORE THE HONORABLE HENRY T. WINGATE UNITED STATES DISTRICT JUDGE
AUGUST 3RD, 2016 JACKSON, MISSISSIPPI
FOR THE GOVERNMENT: MR. DARREN J. LaMARCA MR. PATRICK A. LEMON
FOR THE DEFENDANT: MR. THOMAS M. FORTNER
REPORTED BY: MARY VIRGINIA "Gina" MORRIS, RMR, CRR
501 E. Court, Suite 2.500 Jackson, Mississippi 39201
(601) 608-4187
EXHIBIT
I .I
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1 definitely -- he was definitely paying money to the
2 commissioner.
3 THE COURT: This was in a conversation with
4 Mr. McCrory?
5 THE DEFENuANT: Yes, sir.
6 THE COURT: Was that a telephone or in-perspn
7 conversation?
8 THE DEFENDANT: No. It was over the phone, your
9 Honor.
10 THE COURT: Did you reject that matter or o fer any
11 objection to it?
12 THE DEFENDANT: No, sir, your Honor, I did rot.
13 Regrettably, I did not.
14 THE COURT: So you knew then at that point 1hat there
15 was a kickback scheme in operation?
16 THE DEFENDANT: At that point, your Honor, that's when
17 I put two and two -- I mean, that confirmed, you knov, what was
18 going on, your Honor.
19 THE COURT: Did you already have suspicions.
20 THE DEFENDANT: You know, your Honor, there was so
21 many -- every company out there that did business with the
22 state did -- hired Cecil McCrory as a consultant. Sc I knew
23 they had to have some type -- I didn't know the details or
24 anything like that, but I knew they had to have some type of
25 connections to be able to get all this done. And no other
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1 states that I work in conducted business that way.
2 THE COURT: What other states have you worked in?
3 THE DEFENDANT: Louisiana, Arkansas, Oklahcma,
4 Virginia. Those are primarily the states that we de business
5 in.
6 THE COURT: You supply drug testing cups for them?
7 THE DEFENDANT: At -- not for Drug Testing
8 Corporation, your Honor, but for the manufacturers -- the
53
9 actual manufacturer, the company that made the produ~t at that
10
11
time.
THE COURT: And you say nobody else dealt like that?
12 THE DEFENDANT: No, sir, your Honor. They had
13 consultants, but not to the effect that it was so pu~hed that
14 you had to use this one.
15 THE COURT: So, again, how did you come in ~ontact
16 with McCrory? Did he contact you or you contacted h'm?
17 THE DEFENDANT: He contacted us.
18 THE COURT: And what was the gist of his cortact?
19 THE DEFENDANT: When -- you know, during di ferent
20 conferences, ACA, APPA, different conferences, priso
21 conferences and things like that, I was introduced t) Cecil
22 McCrory. And they just said this is the consultant, you know,
23 that the state primarily uses. And we entered into
24 conversations about the drug testing products and wh t our
25 company has to offer the state.
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PLEA AGREEMENT
Subject United States v. Christopher B. Epps Criminal No. 3:14cr111HTW-FKB
To: John Colette, Esq. Attorney for Defendant
Date February4, 2015
From: D. Michael Hurst, Jr. Assistant United States Attorne Southern District of Mississippi Criminal Division
Christopher B. Epps, Defendant herein, and John Colette, attorney for Defend t, have been notified and understand and agree to the items contained herein, as well as in th Plea Supplement, and that:
1. Count of Conviction. It is understood that, as of the date of this plea greement, Defendant and Defendant's attorney have indicated that Defendant desires to plead gu lty to Counts 23 and 44 of the indictment
2. Sentence. Defendant understands that the penalty for the offense ch ed in Count 23 ofthe indictment, charging a violation of Title 18, United States Code, Sect on 1956(h), is not more than 20 years in prison; a term of supervised release of not more han 3 years; and a fine which is the greater of $500,000 fine or twice the value of the prope involved in transaction. Further, defendant understands that the penalty for the offense charge in Count 44 of the indictment, charging a violation of Title 26, United States Code, Section 72 6(2), is not more than 3 years in prison; a term of supervised release of not more than 1 year; and fine not greater than $250,000.00. Defendant further understands that if a term of supervised lease is imposed, that term will be in addition to any prison sentence Defendant receives; fu er, if any of the terms of Defendant's supervised release are violated, Defendant can be returned to prison for the entire term of supervised release, without credit for any time already served on the term of supervised release prior to Defendant's violation of those conditions. It is further unde tood that the Court may require Defendant to pay restitution in this matter in accordance with a plicable Jaw. Defendant further understands that Defendant is liable to make restitution forth full amount of the Joss determined by the Court, to include relevant conduct, which amou tis not limited to the count of conviction. Defendant further understands that if the Court o rs Defendant to pay restitution, restitution payments cannot be made to the victim direct! but must be made to the Clerk of Court, Southern District of Mississippi. Defendant understan that an order of forfeiture will be entered by the Court as a part of Defendant's sentence and t at such ~rder is mandatory.
3. Determination of Sentencing Guidelines. It is further understood th t the United States Sentencing Guidelines are advisory only and that Defendant and Defeo t's attorney have discussed the fact that the Court must review the Guidelines in reaching a decision
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as to the appropriate sentence in this case, but the Court may impose a sentence other than that indicated by the Guidelines if the Court finds that another sentence would be more a ropriate. Defendant specifically acknowledges that Defendant is not relying upon anyone's cal ulation of a particular Guideline range for the offense to which Defendant is entering this plea, an recognizes that the Court will make the final determination of the sentence and that may be sentenced up to the maximum penalties set forth above.
4. Breach of This Agreement and Further Crimes. It is further under ood that should Defendant fail or refuse as to any part of this plea agreement or commit any fu er crimes, then, at its discretion, the U.S. Attorney may treat such conduct as a breach o this plea agreement and Defendant's breach shall be considered sufficient grounds for the purs it of any prosecutions which the U.S. Attorney has not sought as a result of this plea agreemen including any such prosecutions that might have been dismissed or otherwise barred by the Dou le Jeopardy Clause, and any federal criminal violation of which this office has knowled
5. Financial Obligations. It is further understood and specifically agree Defendant that, at the time of the execution of this document or at the time the plea is Defendant will then and there pay over the special assessment of$100.00 per count Titlel8, United States Code, Section 3013, to the Office ofthe United States District Clerk; Defendant shall thereafter produce proof of payment to the U.S. Attorney or th Probation Office. If the Defendant is adjudged to be indigent, payment of the special sessment at the time the plea is entered is waived, but Defendant agrees that it may be made pa able first from any funds available to Defendant while Defendant is incarcerated. Defendant un erstands and agrees that, pursuant to Title 18, United States Code, Section 3613, whatever mo etary
. penalties are imposed by the Court will be due and payable immediately and subject t immediate enforcement by the United States as provided in Section 3613. Furthermo Defendant agrees to complete a Oe artment of Justice Financial Statement no later th n the da the guilty plea is entered and provide same to the undersigned AUSA. Defendant also agrees to provide all ofDefendant's financial information the Probation Office and, if requested to participate in a pre-sentencing debtor's examination. If the Court imposes a schedule f payments, Defendant understands that the schedule of payments is merely a minimum schedule of payments and not the only method, nor a limitation on the methods, available to the United States to enforce the judgment. If Defendant is incarcerated, Defendant agrees to parti ipate in the Bureau ofPrisons' Inmate Financial Responsibility Program regardless of whether e Court specifically directs participation or imposes a schedule of payments. Defendant unde ds and agrees that Defendant shall participate in the Treasury Offset Program until any and al monetary penalties are satisfied and paid in full by Defendant.
6. Transferring and Liquidating Assets. Defendant understands and a s that Defendant is prohibited from transferring or liquidating any and all assets held or own d by Defendant as of the date this Plea Agreement is signed. Defendant must obtain prior 'tten approval from the U.S. Attorney's Financial Litigation Unit prior to the transfer or liq idation of any and all assets after this Plea Agreement is signed and if Defendant fails to do so th Defendant understands and agrees that an unapproved transfer or liquidation of any as deemed a fraudulent transfer or liquidation.
7. Future Direct Contact With Defendant. Defendant and Defendant's attorney acknowledge that if forfeiture, restitution, a fine, or special assessment or any combin ion of
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forfeiture, restitution, fine, and special assessment is ordered in Defendant's case that this will require regular contact with Defendant during any period of incarceration, probation, nd supervised release. Further, Defendant and Defendant's attorney understand that it is ssential that defense counsel contact the U.S. Attorney's Financial Litigation Unit immediate! after sentencing in this case to confirm in writing whether defense counsel will continue to represent Defendant in this case and in matters involving the collection of the financial obligati ns imposed by the Court. If the U.S. Attorney does not receive any written acknowled ent from defense counsel within two weeks from the date of the entry of Judgment in this case, the U.S. Attorney will presume that defense counsel no longer represents Defendant and the Fi ancial Litigation Unit will communicate directly with Defendant regarding collection of the mancial obligations imposed by the Court. Defendant and Defendant's attorney understand an agree that such direct contact with Defendant shall not be deemed an improper ex parte contact ith Defendant if defense counsel fails to notify the U.S. Attorney of any continued legal representation within two weeks after the date of entry of the Judgment in this case.
8. Waivers. Defendant, knowing and understanding all of the matters afi resaid, including the maximum possible penalty that could be imposed, and being advised of Defendant's rights to remain silent, to trial by jury, to subpoena witnesses on Defenda t's own behalf, to confront the witnesses against Defendant, and to appeal the conviction and ntence, in exchange for the U.S. Attorney entering into this plea agreement and accompanying pea supplement, hereby expressly waives the following rights (except that Defendant rese es the right to raise ineffective assistance of counsel claims):
a. the right to appeal the conviction and sentence imposed in this c , or the manner in which that sentence was imposed, on the grounds set forth in Title 18, United States Code, Section 3742, or on any ground whatsoever, and
b. the right to contest the conviction and sentence or the manner in sentence was imposed in any post-conviction proceeding, including but not li motion brought under Title 28, United States Code, Section 2255, and any proceeding claiming double jeopardy or excessive penalty as a result of any fo ordered or to be ordered in this case, and
c. any right to seek attorney fees and/or costs under the "Hyde Amen ment," Title 18, United States Code, Section 3006A, and the Defendant acknowledge government's position in the instant prosecution was not vexatious, frivolous, r in bad faith, and
d. all rights, whether asserted directly or by a representative, to reque t or receive from any department or agency of the United States any records pertai ing to the investigation or prosecution of this case, including without limitation any reco s that may be sought by Defendant or by Defendant's representative under the Freed m of Information Act, set forth at Title 5, United States Code, Section 552, or the P ivacy Act of 1974, at Title 5, United States Code, Section 552a.
e. Defendant further acknowledges and agrees that any factual issues garding the sentencing will be resolved by the sentencing judge under a preponderance of the evidence standard, and ~fendant waives any right to a jury determination of ese
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sentencing issues. Defendant further agrees that, in making its sentencing dec sian, the district court may consider any relevant evidence without regard to its admissi ility under the rules of evidence applicable at trial.
Defendant waives these .-ights in exchange for the United States Attorney ntering into this plea agreement and accompanying plea supplement.
9. Prohibition from Elected Public Office or Government Em Jovme t. Upon entering a guilty plea, the Defendant agrees to neither run for elected public office nor apply for or be employed by any governmental entity in the future.
10. Complete Agreement. It is further understood that this plea agreemen and the plea supplement completely reflects all promises, agreements and conditions made by d between the United States Attorney's Office for the Southern District of Mississippi a d Defendant.
Defendant and Defendant's attorney of record declare that the terms of th s plea agreement have been:
1. READ BY OR TO DEFENDANT; 2. EXPLAINED TO DEFENDANT BY DEFENDANT'S ATTORNEY; 3. UNDERSTOOD BY DEFENDANT; 4. VOLUNTARILY ACCEPTED BY DEFENDANT; and 5. AGREED TO AND ACCEPTED BY DEFENDANT.
WITNESS OUR SIGNATURES. as set fotth below.
2-2S · t5 D. Michael Hurst, Jr Date
Assistant United State. ttomey
Date
_,/II.,// ~
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PLEA AGREEMENT
Subject United States v. Cecil McCrory Criminal No. 3:14crJ 11HTW-FKB
To: Don Leland, Esq. Attorney for Defendant
Date February 12,2015
From: D. Michael Hurst, Jr. Assistant United States Attorney Southern District of Mississippi Criminal Division
Cecil McCrory, Defendant herein, and Don Leland, attorney for Defendant, ha e been notified and understand and agree to the items contained herein, as wel1 as in the Plea Supplement, and that:
1. Count of Conviction. It is understood that, as of the date of this plea a reement, Defendant and Defendant's attorney have indicated that Defendant desires to plead gui ty to Count 23 of the indictment.
2. Sentence. Defendant understands that the penalty for the offense char ed in Count 23 of the indictment, charging a violation of Title 1 8, United States Code, Secti n 1956(h), is not more than 20 years in prison; a term of supervised release of not more t an 3 years; and a fine which is the greater of $500,000 fine or twice the value of the prope involved in transaction. Defendant further understands that if a term of supervised release is im osed, that term will be in addition to any prison sentence Defendant receives; further, if any of th terms of Defendant's supervised release are violated, Defendant can be returned to prison forth entire term of supervised release, without credit for any time already served on the term of su ervised release prior to Defendant's violation of those conditions. It is further understood that e Court may require Defendant to pay res'~itution in this matter in accordance with applicable l Defendant further understands that Defendant is liable to make restitution for the full ount of the loss determined by the Court, to include relevant conduct, which amount is not lim ted to the count of conviction. Defendant further understands that if the Court orders Defendant pay restitution, restitution payments cannot be made to the victim directly but must be mad to the Clerk of Court, Southern District of Mississippi. Defendant understands that an order f forfeiture will be entered by the Court as a part of Defendant's sentence and that such mandatory.
3. Determination of Sentencing Guidelines. It is further understood tha the United States Sentencing Guidelines are advisory only and that Defendant and Defend
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attorney have discussed the fact that the Court must review the Guidelines in reaching decision as to the appropriate sentence in this case, but the Court may impose a sentence other an that indicated by the Guidelines if the Court fmds that another sentence would be more ap ropriate. Defendant specifically acknowledges that Defendant is not relying upon anyone's calc lation of a particular Guideline range for the offense to which Defendant is entering this plea, an recognizes that the Court will make the final determination of the sentence and that D may be sentenced up to the maximum penalties set forth above.
4. Breach of This Agreement and Further Crimes. It is further underst should Defendant fail or refuse as to any part of this plea agreement or commit any crimes, then, at its discretion, the U.S. Attorney may treat such conduct as a breach of is plea agreement and Defendant's breach shall be considered sufficient grounds for the pursui of any prosecutions which the U.S. Attorney has not sought as a result of this plea agreement, including any such prosecutions that might have been dismissed or otherwise barred by the Dou e Jeopardy Clause, and any federal criminal violation of which this office has knowledg .
S. Financial Obligations. It is further understood and specifically agreed o by Defendant that, at the time of the execution of this document or at the time the plea is tered, Defendant will then and there pay over the special assessment of $100.00 per count req ired by Titlel8, United States Code, Section 3013, to the Office of the United States District C urt Clerk; Defendant shall thereafter produce proof of payment to the U.S. Attorney or the .S. Probation Office. Ifthe Defendant is adjudged to be indigent, payment of the special at the time the plea is entered is waived, but Defendant agrees that it may be made pa Ie first from any funds available to Defendant while Defendant is incarcerated. Defendant und rstands and agrees that, pursuant to Title 18, United States Code, Section 3613, whatever mon penalties are imposed by the Court will be due and payable immediately and subject to immediate enforcement by the United States as provided in Section 3613. Furthermore Defendant a to com lete a De artment of Justice Financial Statement no later th the da the guilty plea is entered and provide same to the undersigned AUSA. Defendant also provide all of Defendant's fmancial information the Probation Office and, if requested, o participate in a pre-sentencing debtor's examination. If the Court imposes a schedule o payments, Defendant understands that the schedule of payments is merely a minimum hedule of payments and not the only method, nor a limitation on the methods, available to the nited States to enforce the judgment. If Defendant is incarcerated, Defendant agrees to partie pate in the Bureau of Prisons' Inmate Financial Responsibility Program regardless of whether e Court specifically directs participation or imposes a schedule of payments. Defendant unde ds and agrees that Defendant shall participate in the Treaswy Offset Program until any and all penalties are satisfied and paid in full by Defendant.
6. Transferring and Liquidating Assets. Defendant understands and a Defendant is prohibited from transferring or liquidating any and all assets held or own Defendant as of the date this Plea Agreement is signed. Defendant must obtain prior 'tten approval from the U.S. Attorney's Financial Litigation Unit prior to the transfer or liqui tion of any and all assets after this Plea Agreement is signed and if Defendant fails to do so the Defendant understands and agrees that an unapproved transfer or liquidation of any ass t shall be
Page 2 ofS
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deemed a fraudulent transfer or liquidation.
7. Future Direct Contact With Defendant. Defendant and Defendant' attorney acknowledge that if forfeiture, restitution, a fine, or special assessment or any comb in tion of forfeiture, restitution, fine, and special assessment is ordered in Defendant's case that is will require regular contact with Defendant during any period of incarceration, probation, d supervised release. Further, Defendant and Defendant's attorney understand that it is that defense counsel contact the U.S. Attorney's Financial Litigation Unit immediate! after sentencing in this case to confirm in writing whether defense counsel will continue to present Defendant in this case and in matters involving the collection of the financial obligati ns imposed by the Court. If the U.S. Attorney does not receive any written acknowled ent from defense counsel within two weeks from the date of the entry of Judgment in this case, e U.S. Attorney will presume that defense counsel no longer represents Defendant and the Fi ancial Litigation Unit will communicate directly with Defendant regarding collection of the mancial obligations imposed by the Court. Defendant and Defendant's attorney understand an agree that such direct contact with Defendant shall not be deemed an improper ex parte contact ith Defendant if defense counsel fails to notify the U.S. Attorney of any continued legal representation within two weeks after the date of entry of the Judgment in this case.
8. Waivers. Defendant, knowing and understanding all of the matters a:6 resaid, including the maximum possible penalty that could be imposed, and being advised of Defendant's rights to remain silent, to trial by jwy, to subpoena witnesses on Defen t's own behalf, to confront the witnesses against Defendant, and to appeal the conviction and exchange for the U.S. Attorney entering into this plea agreement and accompanying p supplement, hereby expressly waives the following rights (except that Defendant rese right to raise ineffective assistance of counsel claims):
a. the right to appeal the conviction and sentence imposed in this cas , or the manner in which that sentence was imposed, on the grounds set forth in Title 1 , United States Code, Section 3742, or on any ground whatsoever, and
b. the right to contest the conviction and sentence or the manner in sentence was imposed in any post-conviction proceeding, including but not li motion brought under Title 28, United States Code, Section 2255, and any proceeding claiming double jeopardy or excessive penalty as a result of any fo ordered or to be ordered in this case, and
c. any right to seek attorney fees and/or costs under the "Hyde Amen ment," Title 18, United States Code, Section 3006A, and the Defendant acknowledge that the government's position in the instant prosecution was not vexatious, frivolous, r in bad faith, and
d. all rights, whether asserted directly or by a representative, to requ receive from any department or agency of the United States any records perta · ing to the investigation or prosecution of this case, including without limitation any reco that
Page 3 of5
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may be sought by Defendant or by Defendant's representative under the Freed m of lnfonnation Act, set forth at Title 5, United States Code, Section 552, or the P ·vacy Act of 1974, at Title 5, United States Code, Section 552a.
e. Defendant further acknowledges and agrees that any factual issues garding the sentencing will be resolved by the sentencing judge under a preponderance of the evidence standard, and Defendant waives any right to a jury detennination of ese sentencing issues. Defendant further agrees that, in making its sentencing deci ion, the district court may consider any relevant evidence without regard to its admissi ility under the rules of evidence applicable at trial.
Defendant waives these rights in exchange for the United States Attorney into this plea agreement and accompanying plea supplement.
9. Prohibition from Elected Public Office or Government Em lo me t. Upon entering a guilty plea, the Defendant agrees to neither run for elected public office nor pply for or be employed by any governmental entity in the future.
10. Suspension, Exclusion and Debarment. The Defendant agrees that h of his companies or affiliated companies will be pennanently suspended, excluded an from any current and future government contracts, either as a prime contractor or sub ontractor, and agrees to cooperate with any government agency in administrative, regulatory or c vii suspension, debannent or exclusion proceedings instituted against the defendant or an of his companies or affiliated companies, including the Defendant's voluntary execution of a Voluntary Exclusion Agreement.
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11. Complete Agreement. It is further understood that this plea agreeme t and the plea supplement completely reflects all promises, agreements and conditions made by and between the United States Attorney's Office for the Southern District of Mississippi a d Defendant.
Defendant and Defendant's attorney of record declare that the terms oft is plea agreement have been:
1. READ BY OR TO DEFENDANT; 2. EXPLAINED TO DEFENDANT BY DEFENDANT'S ATTORNEY; 3. UNDERSTOOD BY DEFENDANT; 4. VOLUNTARILY ACCEPTED BY DEFENDANT; and 5. AGREED TO AND ACCEPTED BY DEFENDANT.
WITNESS OUR SIGNA!URES, as set forth below.
HAROLD H. BRITTAIN
2 -·--2-S,/S Date
Attorney for Defendant
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PLEA AGREEMENT
Subject United States v. Mark Longoria Criminal No. 3:16cr54 HTW-FKB
To: Thomas M. Fortner Erick M. Lowery, P.A. 525 Corinne Street Hattiesburg, MS 39401
AUG 3- 2016
DEPUTY
From: Darren J. LaMarca Assistant .United States Attorney Southern District of Mississippi
· Criminal Division
Mark Longmia, Defendant herein, and Thomas M. Fortner, attorney for Defen ant, have been notified and understand and agree to the items contained herein, as well as in the lea Supplement, and that:
1. Count of Conviction. It is understood that, as ofthe date ofthis plea a eement, Defendant and Defendant's attorney have indicated that Defendant desires to plead gui ty to the infonnation.
2. Sentence. Defendant understands that the penalty for the offense char ed in the information, charging a violation of Title 18, United States Code, Section 371, is not ore than 5 years in prison; a term of supervised release of not more than 3 years; and a fine up to 250,000. Defendant further understands that if a term of supervised release is imposed, that te will be in addition to any prison sentence Defendant receives; finther, if any of the terms ofDe:D dant's supervised release are violated, Defendant can be returned to prison for the entire term of supervised release, without credit for any time already served on the term of supervise release prior to Defendant's violation oftllOse conditions. It is further understood that the Cout may require Defendant to pay restitution in this matter in accordance with applicable law. efendant further understands that Defendant is liable to make restitution for the full amount oft e loss determined by the Court, to include relevant conduct, which amount is not limited to e count of conviction. Defendant futther understands that if the Court orders Defendant to pay re titution, restitution payments cannot be made to the victim directly but must be made to the Cle of Court, Southern District of Mississippi. Defendant understands that an order offorfei re will be entered by the Cowt as a part of Defendant's sentence and that such order is mandate .
3. Determination of Sentencing Guidelines. It is further understood tha the United States Sentencing Guidelines are advisory only and that Defendant and Defend 1t's attorney have discussed the fact that the Court must review the Guidelines in reaching decision as to the appropriate sentence in this case, but the Court may impose a sentence other an that
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indicated by the Guidelines if the Court finds that another sentence would be more ap ropriate. Defendant specifically acknowledges that Defendant is not relying upon anyone's calc Iation of a particular Guideline range for the offense to which Defendant is entering this plea, an recognizes that the Court wiH make the final c{etermination of the sentence and that D fendant may be sentenced up to the maximum penalties set forth above.
4. Breach of This Agreement and Further Crimes. It is further underst od that should Defendant fail or refuse as to any part of this plea agreement or commit any fu her crimes, then, at its discretion, the U.S. Attorney may treat such conduct as a breach of his plea agreement and Defendant's breach shall be considered sufficient grounds for the pursu t of any prosecutions which the U.S. Attorney has not sought as a result of this plea agreement, including any such prosecutions that might !'lave been dismissed or otherwise barred by the Dou le Jeopardy Clause, and any federal criminal violation ofw~ich this office has knowledg .
5. Financial Obligations. It is further understood and specifically agreed to by Defendant that, at the time of the execution of this document or at the time the plea is ntered, Defendant will then and there pay over the special assessment of$1 00.00 per count r uired by Titlel8, United States Code, Section 3013, to the Office ofthe United States District urt Clerk; Defendant shall thereafter produce proof of payment to the U.S. Attorney or the U.S. Probation Office. If the Defendant is adjudged to be indigent, payment of the special ssessment at the time the plea is entered is waived, but Defendant agrees that it may be made pay ble first from any funds available to Defendant while Defendant is incarcerated. Defendant un rstands and agrees that, pursuant to Title 18, United States Code, Section 3613, whatever mon tary penalties are imposed by the Court will be due and payable immediately and subject to immediate enforcement by the United States as provided in Section 3613. Furthenno Defendant a to com lete a De artment of Justice Financial Statement no later tha the guilty plea is entered and provide same to the undersigned AUSA. Defendant also grees to provide all of Defendant's financial informatio11 the Probation Office and, if requested, to participate in a pre-sentencing debtor's examination. If the Court imposes a schedule o payments, Defendant understands that the schedule of payments is merely a minimum chedule of payments and not the only method, nor a limitation on the methods, available to the nited States to enforce the judgment. If Defendant is incarcerated, Defendant agrees to parti ipate in the Bureau of Prisons' Inmate Financial Responsibility Program regardless of whether e Court specifically directs participation or imposes a schedule of payments. Defendant under ands and agrees that Defendant shall participate in the Treasury Offset Program until any and all monetary penalties are satisfied and paid in full by Defendant.
6. Transferring and Liquidating Assets. Defendant understands and a es that Defendant is prohibited from transferring or liquidating any and all assets held or own d by Defendant as of the date this Plea Agreement is signed. Defendant must ob~in prior itten approval from the U.S. Attorney's Financial Litigation Unit prior to the transfer or liqu dation of any and all assets after this Plea Agreement is signed and if Defendant fails to do so th Defendant understands and agrees that an unapproved transfer or liquidation of any ass t shall be deemed a fraudulent transfer or liquidation.
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7. Future Direct Contact With Defendant. Defendant and Defendant' attorney acknowledge that if forfeiture, restitution, a fme, or special assessment or any combin tion of forfeiture, restitution, fine, and special assessment is ordered in Defendant's case that his will require regular contact with Defendant during any period of incarceration, probation, nd supervised release. Further, Defendant and Defendant's attorney understand that it is that defense counsel contact the U.S. Attorney's Financial Litigation Unit immediate! sentencing in this case to confirm in writing whether defense counsel will continue to epresent Defendant in this case and in matters involving the collection of the financial obligati ns imposed by the Court. If the U.S. Attorney does not receive any written acknowled ent from defense counsel within two weeks from the date of the entry of Judgment in this case, he U.S. Attorney will presume that defense counsel no longer represents Defendant and the Fi ancial Litigation Unit will communicate directly with Defendant regarding collection of the mancial obligations imposed by the Court. Defendant and Defendant's attorney understand an agree that such direct contact with Defendant shall not be deemed an improper ex parte contact ith Defendant if defense counsel fails to notify the U.S. Attorney of any continued legal representation within two weeks after the date of entry of the Judgment in this case.
8. Waivers. Defendant, knowing and understanding all of the matters aD including the maximum possible penalty that could be imposed, and being advised of Defendant's rights to remain silent, to trial by jury, to subpoena witnesses on Defenda t's own behalf, to confront the witnesses against Defendant, and to appeal the conviction and ntence, in exchange for the U.S. Attorney entering into this plea agreement and accompanying p supplement, hereby expressly waives the following rights (except that Defendant rese right to raise ineffective assistance of counsel claims):
a. the right to appeal the conviction and sentence imposed in this cas , or the manner in which that sentence was imposed, on the grounds set forth in Title 1 , United States Code, Section 3742, or on any ground whatsoever, and
b. the right to contest the conviction and sentence or the manner in w ich the sentence was imposed in any post-conviction proceeding, including but not li 'ted to a motion brought under Title 28, United States Code, Section 2255, and any typ of proceeding claiming double jeopardy or excessive penalty as a result of any fo ordered or to be ordered in this case, and
c. any right to seek attorney fees and/or costs under the "Hyde Amen ent," Title 18, United States Code, Section 3006A, and the Defendant acknowledges that the government's position in the instant prosecution was not vexatious, frivolous, in bad faith, and
d. · all rights, whether asserted directly or by a representative, to reques or receive from any department or agency of the United States any records perta' ·ng to the investigation or prosecution of this case, including without limitation any recor s that may be sought by Defendant or by Defendant's representative under the Freedo of Infonnation Act, set forth at Title 5, United States Code, Section 552, or the Pr vacy Act of 1974, at Title 5, United States Code, Section 552a.
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e. Defendant further acknowledges and agrees that any factual issue regarding the sentencing will be resolved by the sentencing judge under a preponderan of the evidence standard, and Defendant waives any dght to a jury determination of hese sentencing issues. Defendant further agrees that, in making its sentencing dec sion, the district court may consider any relevant evidence without regard to its admiss'bility under the rules of evidence appJicable at trial.
9. Complete Agreement. It is further understood that this plea agreeme t and the plea supplement completely reflect all promises, agreements and conditions made by nd between the United States Attorney's Office for the Southem District of Mississippi a d Defendant.
Defendant and Defendant's attorney of record declare that the terms oft agreement have been:
1. READ BY OR TO DEFENDANT; 2. EXPLAINED TO DEFENDANT BY DEFENDANT'S ATTORNEY; 3. UNDERSTOOD BY DEFENDANT; 4. VOLUNTARILY ACCEPTED BY DEFENDANT; and 5. AGREED TO AND ACCEPTED BY DEFENDANT.
WITNESS OUR SIGNATURES, as set forth below.
HAROLD H. BRITTAIN Attorney for the United States Acting Under Authority Conferred by 28 U.S.C. § 515
Thomas M. Fortner Attorney for Defendant
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Case: 25CI1:17-cv-00087-JAW Document #: 1 Filed: 02/08/2017 Page 87 of 87